You have been given the following projections for Cali Corporation for the coming year.
Sales = 10,000 units
Sales price per unit = $10
Variable cost per unit = $5
Fixed costs = $10,000
Bonds outstanding = $15,000
rd on outstanding bonds = 8%
Tax rate = 40%
Shares of common stock outstanding = 10,000 shares
Beta = 1.4
rRF = 5%
rM = 9%
Dividend payout ratio = 60%
Growth rate = 8%
Calculate the current price per share for Cali Corporation.
a. $35.22
b. $46.27
c. $48.55
d. $53.72
e. $59.76