Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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. Revenue Cost of goods sold Depreciation Inventories Administrative expenses Interest expense Federal and state taxes Accounts payable Accounts receivable Net fixed assetst Long-term debt Notes payable Dividends paid Cash and marketable securities 2015 $3,900 1,200 470 330 470 180 480 350 370 5,000 2,200 790 490 820 2016 $ 4,000 1,300 490 400 520 180 500 410 445 5,850 2,520 520 490 410 . * 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 $6,115 and that the value of its long-term debt is only $2,320. In addition, the consensus among investors is that Fincorp's past investments in developing the skills of its employees are worth $2,300. This investment of course does not show up on the balance sheet. What will be the price per share of Fincorp stock? (Assume 468,000 shares of stock outstanding.) (Round your answer to 2 decimal places.) Price per share

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Property Finance

Authors: Giacomo Morri, Antonio Mazza

1st Edition

1118764404, 978-1118764404

More Books

Students also viewed these Finance questions