subject
Business, 17.04.2020 00:10 tmax8437

Dewey Corp. is expected to have an EBIT of $2,500,000 next year. Depreciation, the increase in net working capital, and capital spending are expected to be $185,000, $90,000, and $190,000, respectively. All are expected to grow at 15 percent per year for four years. The company currently has $13,500,000 in debt and 800,000 shares outstanding. After Year 5, the adjusted cash flow from assets is expected to grow at 2.1 percent indefinitely. The company’s WACC is 8.4 percent and the tax rate is 21 percent. What is the price per share of the company's stock?

ansver
Answers: 2

Another question on Business

question
Business, 21.06.2019 13:20
Moody farms just paid a dividend of $3.95 on its stock. the growth rate in dividends is expected to be a constant 5 percent per year indefinitely. investors require a return of 14 percent for the first three years, a return of 12 percent for the next three years, and a return of 10 percent thereafter. what is the current share price?
Answers: 1
question
Business, 21.06.2019 20:40
•broussard skateboard’s sales are expected to increase by 15% from $8 million in 2016 to $9.2 million in 2017. its assets totaled $5 million at the end of 2016. broussard is already at full capacity, so its assets must grow at the same rate as projected sales. at the end of 2016, current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. the after-tax profit margin is forecasted to be 6%, and the forecasted payout ratio is 40%. use the afn equation to forecast broussard’s additional funds needed for the coming year
Answers: 2
question
Business, 22.06.2019 09:00
Drag the tiles to the correct boxes to complete the pairs.(there's not just one answer)match each online banking security practice with the pci security requirement that mandates it.1. encrypting transfer of card data2. installing a firewall3. installing antivirus software4. assigning unique ids and user namesa. vulnerability management programb. credit card data protectionc. strong access controlsd. secure network
Answers: 3
question
Business, 23.06.2019 18:30
How is the after tax contribution recovered?
Answers: 1
You know the right answer?
Dewey Corp. is expected to have an EBIT of $2,500,000 next year. Depreciation, the increase in net w...
Questions
question
Advanced Placement (AP), 21.12.2021 19:00
question
English, 21.12.2021 19:00
question
Mathematics, 21.12.2021 19:10
question
History, 21.12.2021 19:10
question
Mathematics, 21.12.2021 19:10
Questions on the website: 13722367