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  1. business
  2. accounting
  3. derry corp. is expected to have an ebit of $2.1 mi

Derry Corp. is expected to have an EBIT of $2.1 million next year. Increases in...

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Accounting

Derry Corp. is expected to have an EBIT of $2.1 million next year. Increases in depreciation, the increase in net working capital, and capital
spending are expected to be $165,000,$80,000, and $120,000, respectively. All are expected to grow at 18 percent per year for four years.
The company currently has $10.4 million in debt and 750,000 shares outstanding. After Year 5, the adjusted cash flow from assets is
expected to grow at 3 percent indefinitely. The company's WACC is 8.5 percent and the tax rate is 21 percent. What is the price per share of
the company's stock?
Input Areo:
(Use cells A6 to B19 from the given information to complete this question. You must use the built-in Excel function to answer this
question.)
Output Area:
image

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