you have looked at the current financial statements for reigie homes co. the company has an...

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you have looked at the current financial statements for reigiehomes co. the company has an ebit of 3130000 this year.depreciation the increase in net working capital, and capitalspending are expected to be 239,000, 104,000 and 485,000respectively. you expected that over the next five years, ebit willgrow at 20 percent per year, depreciation and capital spending willgrow at 25 percent per year, and nwc will grow at 15 percent peryear. the company currently has 17.9 million in debt and 515,000shares outstanding. after year 5 the adjusted cash flow from assetsis expected to grow at 3.5 percent indefinitely. the company's waccis 8.7 percent and the tax rate is 25 percent. what is the priceper share of the company's stock

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3.6 Ratings (341 Votes)

Reigie 1 2 3 4 5 EBIT 3130000 3756000 4507200 5408640 6490368 Tax 782500 939000 1126800 1352160 1622592 Depreciation 239000 298750 373438 466797 See Answer

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you have looked at the current financial statements for reigiehomes co. the company has an ebit of 3130000 this year.depreciation the increase in net working capital, and capitalspending are expected to be 239,000, 104,000 and 485,000respectively. you expected that over the next five years, ebit willgrow at 20 percent per year, depreciation and capital spending willgrow at 25 percent per year, and nwc will grow at 15 percent peryear. the company currently has 17.9 million in debt and 515,000shares outstanding. after year 5 the adjusted cash flow from assetsis expected to grow at 3.5 percent indefinitely. the company's waccis 8.7 percent and the tax rate is 25 percent. what is the priceper share of the company's stock