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ControlYou have looked at the current financial statements for J&R Homes, Company. The company has an EBIT of $ 3 , 1 3 0 ,

ControlYou have looked at the current financial statements for J&R Homes, Company. The company has an EBIT of $3,130,000 this year. Depreciation, the increase in net working capital, and capital spending were $239,000, $104,000, and $485,000, respectively. You expect that over the next five years, EBIT will grow at 20 percent per year, depreciation and capital spending will grow at 25 percent per year, and NWC will grow at 15 percent per year. The company currently has $17.9 million in debt and 515,000 shares outstanding. After Year 5, the adjusted cash flow from assets is expected to grow at 3.5 percent indefinitely. The companys WACC is 8.7 percent and the tax rate is 25 percent. What is the price per share of the company's stock?

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