Question
Hi, my question is the following: Ward Corp. is expected to have an EBIT of $2,150,000 next year. Depreciation, the increase in net working capital,
Hi, my question is the following: Ward Corp. is expected to have an EBIT of $2,150,000 next year. Depreciation, the increase in net working capital, and capital spending are expected to be $170,000, $95,000, and $120,000, respectively. All are expected to grow at 19 percent per year for four years. The company currently has $15,500,000 in debt and 850,000 shares outstanding. After Year 5, the adjusted cash flow from assets is expected to grow at 3 percent indefinitely. The companys WACC is 8.5 percent and the tax rate is 35 percent. |
What is the price per share of the company's stock? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.) |
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