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  3. derry corporation is expected to have an ebit of $

Derry Corporation is expected to have an EBIT of $2,600,000 next year. Increases in depreciation,...

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Accounting

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Derry Corporation is expected to have an EBIT of $2,600,000 next year. Increases in depreciation, the increase in net working capital, and capital spending are expected to be $160,000,$115,000, and $155,000, respectively. All are expected to grow at 16 percent per year for four years. The company currently has $13,500,000 in debt and 1,150,000 shares outstanding. At Year 5 , you believe that the company's sales will be $19,300,000 and the appropriate price-sales ratio is 2.8 . The company's WACC is 9.2 percent and the tax rate is 23 percent. What is the price per share of the company's stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Answer is complete but not entirely correct

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