Ward corp is expected to have an ebit of 19 million next, Ask an Expert

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Ward Corp. is expected to have an EBIT of $1.9 million next year. Depreciation, the increase in net working capital, and capital spending are expected to be $165,000, $85,000, and $115,000, respectively. All are expected to grow at 18 percent per year for four years. The company currently has $13,000,000 in debt and 800,000 shares outstanding. At Year 5,th adjusted cash flow from assets is expected to grow at 3% indefinitely. The company’s WACC is 8.5 percent and the tax rate is 50 percent. What is the price per share of the company's stock?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M93043486

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