The table below contains data on Fincorp Inc. The balance sheet items correspond to values at year-end 2018 and 2019, while the income statement items correspond to revenues or expenses during the year ending in either 2018 or 2019. All values are in thousands of dollars. 2018 2019 Revenue Cost of goods sold Depreciation $4,000 1,600 $4,100 1,700 500 520 350 550 Inventories Administrative expenses Interest expense Federal and state taxes* 300 500 150 150 400 420 Accounts payable Accounts receivable 300 350 400 450 Net fixed assets Long-term debt Notes payable Dividends paid Cash and marketable securities 5,000 5,800 2,000 1,000 2,400 600 410 410 800 300 * Taxes are paid in their entirety in the year that the tax obligation is incurred. T Net fixed assets are fixed assets net of accumulated depreciation since the asset was installed. Suppose that the market value (in thousands of dollars) of Fincorp's fixed assets in 2019 is $6,000 and that the value of its long-term debt is only $2,200. In addition, the consensus among investors is that Fincorp's past investments in developing the skills of its employees are worth $2,900. This investment of course does not show up on the balance sheet. What will be the price per share of Fincorp stock? (Assume 500,000 shares of stock outstanding.) (Round your answer to 2 decimal places.)
The table below contains data on Fincorp Inc. The balance sheet items correspond to values at year-end 2018 and 2019, while the income statement items correspond to revenues or expenses during the year ending in either 2018 or 2019. All values are in thousands of dollars. 2018 2019 Revenue Cost of goods sold Depreciation $4,000 1,600 $4,100 1,700 500 520 350 550 Inventories Administrative expenses Interest expense Federal and state taxes* 300 500 150 150 400 420 Accounts payable Accounts receivable 300 350 400 450 Net fixed assets Long-term debt Notes payable Dividends paid Cash and marketable securities 5,000 5,800 2,000 1,000 2,400 600 410 410 800 300 * Taxes are paid in their entirety in the year that the tax obligation is incurred. T Net fixed assets are fixed assets net of accumulated depreciation since the asset was installed. Suppose that the market value (in thousands of dollars) of Fincorp's fixed assets in 2019 is $6,000 and that the value of its long-term debt is only $2,200. In addition, the consensus among investors is that Fincorp's past investments in developing the skills of its employees are worth $2,900. This investment of course does not show up on the balance sheet. What will be the price per share of Fincorp stock? (Assume 500,000 shares of stock outstanding.) (Round your answer to 2 decimal places.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:The table below contains data on Fincorp Inc. The balance sheet items correspond to values at year-end 2018 and 2019, while the
income statement items correspond to revenues or expenses during the year ending in either 2018 or 2019. All values are in
thousands of dollars.
2018
2019
Revenue
Cost of goods sold
Depreciation
$4,000
1,600
$4,100
1,700
500
520
350
550
Inventories
Administrative expenses
Interest expense
Federal and state taxes*
300
500
150
150
400
420
Accounts payable
Accounts receivable
300
350
400
450
Net fixed assets
Long-term debt
Notes payable
Dividends paid
Cash and marketable securities
5,000
5,800
2,000
1,000
2,400
600
410
410
800
300
* Taxes are paid in their entirety in the year that the tax obligation is incurred.
T Net fixed assets are fixed assets net of accumulated depreciation since the asset was installed.
Suppose that the market value (in thousands of dollars) of Fincorp's fixed assets in 2019 is $6,000 and that the value of its long-term
debt is only $2,200. In addition, the consensus among investors is that Fincorp's past investments in developing the skills of its
employees are worth $2,900. This investment of course does not show up on the balance sheet. What will be the price per share of
Fincorp stock? (Assume 500,000 shares of stock outstanding.) (Round your answer to 2 decimal places.)
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