Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. you have looked at the current financial statement

You have looked at the current financial statements for Reigle Homes, Co. The company has...

60.1K

Verified Solution

Question

Accounting

You have looked at the current financial statements for Reigle Homes, Co. The company has an EBIT of $3,150,000 this year. Depreciation, the increase in net working capital, and capital spending were $240,000, $105,000, and $490,000, respectively. You expect that over the next five years, EBIT will grow at 14 percent per year, depreciation and capital spending will grow at 19 per year, and NWC will grow at 9 per year. The company currently has $18,100,000 in debt and 375,000 shares outstanding. After Year 5, the adjusted cash flow from assets is expected to grow at 2.5 percent indefinitely. The companys WACC is 7.8 percent and the tax rate is 40 percent. What is the price per share of the company's stock?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students