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

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You have looked at the current financial statements for ReigleHomes, Co. The company has an EBIT of $2,890,000 this year.Depreciation, the increase in net working capital, and capitalspending are expected to be $227,000, $92,000, and $425,000,respectively. You expect that over the next five years, EBIT willgrow at 18 percent per year, depreciation and capital spending willgrow at 23 percent per year, and NWC will grow at 13 percent peryear. The company currently has $15.5 million in debt and 415,000shares outstanding. After Year 5, the adjusted cash flow fromassets is expected to grow at 3.5 percent indefinitely. Thecompany’s WACC is 8.9 percent and the tax rate is 23 percent. Whatis the price per share of the company's stock? (Do not roundintermediate calculations and round your answer to 2 decimalplaces, e.g., 32.16.)

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Value of firm present value of FCF upto year 5 present valueof horizon value at end of year 5Free Cash flow FCF See Answer

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You have looked at the current financial statements for ReigleHomes, Co. The company has an EBIT of $2,890,000 this year.Depreciation, the increase in net working capital, and capitalspending are expected to be $227,000, $92,000, and $425,000,respectively. You expect that over the next five years, EBIT willgrow at 18 percent per year, depreciation and capital spending willgrow at 23 percent per year, and NWC will grow at 13 percent peryear. The company currently has $15.5 million in debt and 415,000shares outstanding. After Year 5, the adjusted cash flow fromassets is expected to grow at 3.5 percent indefinitely. Thecompany’s WACC is 8.9 percent and the tax rate is 23 percent. Whatis the price per share of the company's stock? (Do not roundintermediate calculations and round your answer to 2 decimalplaces, e.g., 32.16.)