Solved

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

Question 41

Essay

Shady Sunglasses operates retail sunglass kiosks in shopping malls.Below is information related to the company:
 (dollar amounts in thousands) Net Cash Flow from Operations Interest Expense after tax Decrease (Increase) in Cash Required for Operations Net Cash Flow from Investing Net Cash from Debt Financing Present Value Factors (Re=8.5%) Common Shares Outstanding in thousands2012201320142015201620175646288541059134516551221341481451551487554483261482873003102852942772102041408540460.9220.8490.7830.7220.6651512\begin{array}{l}\begin{array}{lll} \text { (dollar amounts in thousands)}\\ \text { Net Cash Flow from Operations}\\ \text { Interest Expense after tax}\\ \text { Decrease (Increase) in Cash}\\ \text { Required for Operations}\\ \text { Net Cash Flow from Investing}\\ \text { Net Cash from Debt Financing}\\\\ \text { Present Value Factors }\left(\mathrm{R}_{e}=8.5 \%\right)\\\text { Common Shares Outstanding in thousands}\\\end{array}\begin{array}{cccccc}\underline {2012}&\underline {2013}&\underline {2014}&\underline {2015}&\underline {2016}&\underline {2017}\\564 & 628 & 854 & 1059 & 1345 & 1655 \\122 & 134 & 148 & 145 & 155 & 148 \\-75 & -54 & -48 & -32 & -61 & -48 \\\\-287 & -300 & -310 & -285 & -294 & -277 \\210 & 204 & 140 & 85 & -40 & -46\\\\0.922 & 0.849 & 0.783 & 0.722 & 0.665\\1512\\\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' current 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