Question
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
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.
Footnote asterisk Taxes are paid in their entirety in the year that the tax obligation is incurred.
Footnote 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 $6,570 and that the value of its long-term debt is only $3,130. In addition, the consensus among investors is that Fincorps 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 542,000 shares of stock outstanding.)
Note: Round your answer to 2 decimal places.
* Taxes are paid in their entirety in the year that the tax obligation is incurred. Suppose that the market value (in thousands of dollars) of Fincorp's fixed assets in 2022 is $6,570 and that the value of its long-term debt is only $3,130. 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 542,000 shares of stock outstanding.) Note: 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