Ward corp is expected to have an ebit of 1950000 next year, Ask an Expert

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Ward Corp. is expected to have an EBIT of $1,950,000 next year. Depreciation, the increase in net working capital, and capital spending are expected to be $166,000, $87,000, and $116,000, respectively. All are expected to grow at 15 percent per year for four years. The company currently has $13,500,000 in debt and 810,000 shares outstanding. At Year 5, you believe that the company's sales will be $16,000,000 and the appropriate price−sales ratio is 2.1. The company’s WACC is 8.1 percent and the tax rate is 35 percent. What is the price per share of the company's stock?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92265125

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