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Sales = 19,000 units Sales prices per units = $12 Variable cost per unit = $5 Fixed Costs = $10,000 Bonds outstanding = $10,000 Interest
- Sales = 19,000 units
- Sales prices per units = $12
- Variable cost per unit = $5
- Fixed Costs = $10,000
- Bonds outstanding = $10,000
- Interest Rate on outstanding bonds = 8%
- Tax rate = 40%
- Share of common stock outstanding = 20,000 shares
- Beta = 1.4
- Risk Free Rate = 5%
- Market Risk Premium = 9%
- Dividend payout ratio = 70%
- Growth rate = 8%
Calculate the current price per share for gumbo Corporation
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