You are trying to estimate the fundamental growth in earnings for Janus Enterprises for the next...

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You are trying to estimate the fundamental growth in earningsfor Janus Enterprises for the next 5 years and have obtained thefollowing information:
In the most recent year, Janus reported operating income of $100million on book capital invested (at the beginning of the period)of $800 million. The firm faced a tax rate of 40% during theperiod. The firm also reported capital expenditures of $140 millionand depreciation of $ 100 million in the most recent year. Non-cashworking capital increased by $10 million during the year.
--Estimate the after-tax return on capital last year forJanus.
--Estimate the reinvestment rate last year for Janus.
--Estimate the expected growth rate for the next 5 years forJanus, assuming that the return on capital and reinvestment rateremain unchanged.
--Now assume that Janus will improve its return on capital onnew investments for the next 5 years to 15% while the return oncapital on existing investments will remain at current levels.Estimate the expected annual growth rate over the 5 years.

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You are trying to estimate the fundamental growth in earningsfor Janus Enterprises for the next 5 years and have obtained thefollowing information:In the most recent year, Janus reported operating income of $100million on book capital invested (at the beginning of the period)of $800 million. The firm faced a tax rate of 40% during theperiod. The firm also reported capital expenditures of $140 millionand depreciation of $ 100 million in the most recent year. Non-cashworking capital increased by $10 million during the year.--Estimate the after-tax return on capital last year forJanus.--Estimate the reinvestment rate last year for Janus.--Estimate the expected growth rate for the next 5 years forJanus, assuming that the return on capital and reinvestment rateremain unchanged.--Now assume that Janus will improve its return on capital onnew investments for the next 5 years to 15% while the return oncapital on existing investments will remain at current levels.Estimate the expected annual growth rate over the 5 years.