You are applying the Discounted Cash Flow Model on AppleBanana Inc. The current sales of the company are 1.8 billion and you think sales will grow at 13% every year over the next 5 years, after which you expect the growth rate to level off to 6% per year forever. The company currently has 280 million in PP&E and 200 million in net working capital. You expect the operating margins to be 30 percent with a tax rate of 34 percent. If the weighted average cost of capital of AppleBanana Inc. is 9.35 percent, the company is 1/3 debt and 2/3 equity, with one billion shares outstanding, the stock price should be _____. 

(Do not round intermediate calculations. Round your answer to two decimal places.)

Answer rating: 100% (QA)

The stock price per share is calculated as 138 The calculation of the per share stock price along wi... View the full answer