Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use the information and determine the value of equity and the price per share 1 2 3 4 5 Cash 80 90 95 100 105

Use the information and determine the value of equity and the price per share

1 2 3 4 5
Cash 80 90 95 100 105
Marketable sec 10 20 30 40 50
Accounts receivable 200 230 260 290 325
Inventories 300 400 500 600 700
Other current operating assets 50 60 70 80 90
Net fixed assets 1000 1100 1200 1300 1 400
Other non-current operating assets 40 50 60 70 90
total assets 1680 1950 2215 2480 2760
Accts. payable, accruals and other operating current liabilities 300 320 330 340 350
short term debt 50 50 50 50 50
Other operating non-current liabilities 30 45 50 55 60
long term debt 100 100 100 100 100
total liabilities 480 515 530 545 560
common stock (100 sh outstanding) 700 885 1085 1285 1450
preferred stock 0 0 0 0 0
retained earnings 500 550 600 650 750
total equity 1200 1435 1685 1935 2200
total lia and equity 1680 1950 2215 2480 2760

additional information:
cost of capital 9%
long term growth% 1%
tax rate = 40%
shares outstanding 500
for the next five years
NOPAT 500 600 700 800 700,0

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

The Retirees Complete Annuity Handbook

Authors: Scot Whiskeyman

1st Edition

8647470052, 979-8647470058

More Books

Students also viewed these Finance questions

Question

When, where, and why did the Debt Crisis start?

Answered: 1 week ago