Dewey Corp. is expected to have an EBIT of $2.45 million next
year. Depreciation, the increase...
70.2K
Verified Solution
Link Copied!
Question
Advance Math
Dewey Corp. is expected to have an EBIT of $2.45 million nextyear. Depreciation, the increase in net working capital, andcapital spending are expected to be $180,000, $85,000, and$185,000, respectively. All are expected to grow at 18 percent peryear for four years. The company currently has $13 million in debtand 800,000 shares outstanding. After Year 5, the adjusted cashflow from assets is expected to grow at 2.5 percent indefinitely.The company’s WACC is 9.1 percent and the tax rate is 21 percent.What is the price per share of the company’s stock?
Answer & Explanation
Solved by verified expert
3.9 Ratings (681 Votes)
See Answer
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
