CRONCO REGIONALis a leading construction company founded in 2001 & is based in Babardos. The business entity has within recent years have been encountering increases in revenues from its construction-related services (design, build, expansion&remodeling, & emergency-services. the mainline of business is from the construction of roads & commercial buildings within Babardos and to a limited extent a few other regional operating-markets. Due to the growth of regional tourism, CRONCO REGIONAL has become worried about the competition of other multiple construction companies which have entered the region to provide similar type services around the Caribbean in various markets. Business overseas contributes to 40 percent of the company’s revenues, while the other 60 percent is earned domestically. The novel virus pandemic has caused a slow down in overall operations leading to prolonged delays in delivery of raw materials from abroad. The CEO (CRONCO REGIONAL) is confident that there will be a turnaround in operations in 2021, and is therefore thinking about contracting a loan of $500.0 Million from its designated bank to help rebuild its lead position in the market and to expand its line of business to include the sales of heavy-equipment. Over the years the company has depend mainly on issuing long-term bonds to finance its capital-projects. As of today, the firm has 50.0 million shares of common stock outstanding. With the requirements below determining whether they would be successful with the new loan. Requirements: 1. Complete CRONCO REGIONAL estimated per share data for the year ending December 31 2021. Per Share Data 2021 2020 2019 Common Stock Price $ 23.00 $ 26.00 Earnings Per Share (EPS) $ 6.06 $ 7.12 Dividend Per Share (DPS) $ 1.15 $ 1.06 Book Value Per Share (BVPS) $ 21.72 $ 16.80 Cash Flow Per Share $ 8.06 $ 8.92
CRONCO REGIONALis a leading construction company founded in 2001 & is based in Babardos. The business entity has within recent years have been encountering increases in revenues from its construction-related services (design, build, expansion&remodeling, & emergency-services. the mainline of business is from the construction of roads & commercial buildings within Babardos and to a limited extent a few other regional operating-markets. Due to the growth of regional tourism, CRONCO REGIONAL has become worried about the competition of other multiple construction companies which have entered the region to provide similar type services around the Caribbean in various markets. Business overseas contributes to 40 percent of the company’s revenues, while the other 60 percent is earned domestically.
The novel virus pandemic has caused a slow down in overall operations leading to prolonged delays in delivery of raw materials from abroad. The CEO (CRONCO REGIONAL) is confident that there will be a turnaround in operations in 2021, and is therefore thinking about contracting a loan of $500.0 Million from its designated bank to help rebuild its lead position in the market and to expand its line of business to include the sales of heavy-equipment. Over the years the company has depend mainly on issuing long-term bonds to finance its capital-projects. As of today, the firm has 50.0 million shares of common stock outstanding. With the requirements below determining whether they would be successful with the new loan.
Requirements:
1. Complete CRONCO REGIONAL estimated per share data for the year ending December 31 2021.
|
Per Share Data |
2021 |
2020 |
2019 |
|
Common Stock Price |
|
$ 23.00 |
$ 26.00 |
|
Earnings Per Share (EPS) |
|
$ 6.06 |
$ 7.12 |
|
Dividend Per Share (DPS) |
|
$ 1.15 |
$ 1.06 |
|
Book Value Per Share (BVPS) |
|
$ 21.72 |
$ 16.80 |
|
Cash Flow Per Share |
|
$ 8.06 |
$ 8.92 |
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