Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The table below contains data on Fincorp Incorporated. The balance sheet items correspond to values at year-end 2021 and 2022. while the income statement

image text in transcribed

The table below contains data on Fincorp Incorporated. The balance sheet items correspond to values at year-end 2021 and 2022. while the income statement items correspond to revenues or expenses during the year ending in either 2021 or 2022. All values are in thousands of dollars. 2021 $ 4.500 2022 $ 4.600 Revenue Cost of goods sold Depreciation 1.900 2.000 600 620 Inventories 290 350 Administrative expenses 540 590 Interest expense 130 130 Federal and state taxes 420 440 Accounts payable 280 320 Accounts receivable 440 510 Net fixed assets 5,300 6.190 Long-term debt 1.800 2. 130 Notes payable 888 660 Dividends paid 440 440 Cash and marketable securities 850 500 *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 2022 is $6,500 and that the value of its long-term debt is only $1,930. In addition, the consensus among investors is that Fincorp's past investments in developing the skills of its employees are worth $2,700. This investment, of course, does not show up on the balance sheet. What will be the price per share of Fincorp stock? (Assume 562,000 shares of stock outstanding.) Note: 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

Step: 3

blur-text-image

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

Accounting Tools for Business Decision Making

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

6th edition

1118096894, 978-1-11921511, 978-1118096895

More Books

Students also viewed these Accounting questions

Question

Evaluate each of the following. $ 500 (1 + 0.05) 2

Answered: 1 week ago