Solved

Shady Sunglasses Operates Retail Sunglass Kiosks in Shopping Malls Using the Above Information and Assuming That Steady-State Growth in Is

Question 47

Essay

Shady Sunglasses operates retail sunglass kiosks in shopping malls. Below is information related to the company:
(dolar aHiounts in thousands)Net Cash Flow from OperationsInterest Expense after taxDecrease (Increase) in Cash Required for Operations Net Cash Flow from InvestingNet Cash from Debt FinancingPresent Value Factors (Rc=8.5%)Common SharesOutstandingin thousands2012564122752872100.9221,5122013628134543002040.8492014854148483101400.7832015105914532285850.7222016134515561294400.665201716551484827746\begin{array}{c}\begin{array}{l}\text {(dolar aHiounts in thousands)}\\ \text {Net Cash Flow from Operations}\\ \text {Interest Expense after tax}\\ \text {Decrease (Increase) in Cash Required for Operations}\\ \text { Net Cash Flow from Investing}\\ \text {Net Cash from Debt Financing}\\\\ \text {Present Value Factors \( \left(\mathrm{R}_{\mathrm{c}}=8.5 \%\right) \)}\\ \text {Common SharesOutstanding}\\ \text {in thousands} \end{array}\begin{array}{l}\underline{2012}\\564\\122 \\-75 \\-287 \\210 \\\\0.922 \\1,512\\\\ \end{array}\begin{array}{l}\underline{2013}\\628 \\134 \\-54 \\-300 \\204 \\\\0.849\\\\ \\\end{array}\begin{array}{l}\underline{2014}\\854 \\148 \\-48 \\-310 \\140 \\\\0.783\\\\\\ \end{array}\begin{array}{l}\underline{2015}\\1059 \\145 \\-32 \\-285 \\85 \\\\0.722\\\\ \\\end{array}\begin{array}{l}\underline{2016}\\1345 \\155 \\-61 \\-294 \\-40 \\\\0.665\\\\\\\end{array}\begin{array}{l}\underline{2017}\\1655\\148 \\-48 \\-277 \\-46\\\\\\\\\\ \end{array}\end{array}
Using the above information and assuming that steady-state growth in year 2017 and beyond will be 4% calculate Shady Sunglasses value per share.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents