Question
The table below contains data on Fincorp Inc. The balance sheet items correspond to values at year-end 2015 and 2016, while the income statement items
The table below contains data on Fincorp Inc. The balance sheet items correspond to values at year-end 2015 and 2016, while the income statement items correspond to revenues or expenses during the year ending in either 2015 or 2016. All values are in thousands of dollars.
20152016
Revenue$4,800 $4,900
Cost of goods sold1,800 1,900
Depreciation530550
Inventories250310
Administrative expenses440490
Interest expense160160
Federal and state taxes*560580
Accounts payable300360
Accounts receivable420490
Net fixed assets5,8006,500
Long-term debt2,8003,150
Notes payable700510
Dividends paid370370
Cash and marketable securities810490
* Taxes are paid in their entirety in the year that the tax obligation is incurred.
Net fixed assets are fixed assets net of accumulated depreciation since the asset was installed.
Suppose that the market value (in thousands of dollars) of Fincorp's fixed assets in 2016 is $6,710 and that the value of its long-term debt is only $2,950. In addition, the consensus among investors is that Fincorp's past investments in developing the skills of its employees are worth $3,000. This investment of course does not show up on the balance sheet. What will be the price per share of Fincorp stock? (Assume 575,000 shares of stock outstanding.)(Round your answer to 2 decimal places.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started