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  3. dewey corp. is expected to have an ebit of $3,100,

Dewey Corp. is expected to have an EBIT of $3,100,000 next year. Depreciation, the Increase...

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Accounting

Dewey Corp. is expected to have an EBIT of $3,100,000 next year. Depreciation, the Increase in net working capital, and capital spending are expected to be $245,000, $150,000, and $250,000, respectively. All are expected to grow at 15 percent per year for four years. The company currently has $19,500,000 in debt and 860,000 shares outstanding. At year 5 you believe the companies sales will be at $28,700,000 and the appropriate price-sales ratio will be at 3.4. The companys WACC is at 9.7 percent and the tax rate is 23 percent. What is the price per share of the companys stock?

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