Ernie manufacturing has projected sales of 155 million next


Ernie Manufacturing has projected sales of $155 million next year. Costs are expected to be $100 million and net investment is expected to be $17.5 million. Each of these values is expected to grow at 14 percent the following year, with the growth rate declining by 2 percent per year until the growth rate reaches 6 percent where it will remain. There are 5.5 million shares of stock outstanding. Investors require a return of 13 percent and the corporate tax rate is 40 percent. What is your estimate of the current stock price?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Ernie manufacturing has projected sales of 155 million next
Reference No:- TGS01130051

Expected delivery within 24 Hours