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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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