Pearl Corp. is expected to have an EBIT of $3,700,000 next year. Depreciation, the increase in...

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Pearl Corp. is expected to have an EBIT of $3,700,000 next year.Depreciation, the increase in net working capital, and capitalspending are expected to be $160,000, $170,000, and $210,000,respectively. All are expected to grow at 18 percent per year forfour years. The company currently has $19,000,000 in debt and1,150,000 shares outstanding. At Year 5, you believe that thecompany's sales will be $29,410,000 and the appropriate price-salesratio is 2.9. The companyâ€™s WACC is 9.4 percent and the tax rate is24 percent.
What is the price per share of the company's stock? (Donot round intermediate calculations and round your answer to 2decimal places, e.g., 32.16.)
Share price

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Expected FCF FCF1 EBIT 1 tax Depreciation Increase in NWC Capital Spending Expected FCF FCF1 3700000 1 024 160000 170000 210000 Expected FCF FCF1 See Answer

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