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need help with the last parts of this question in excel formulas! thanks in advance! B D E F G H 1 1 2 You
need help with the last parts of this question in excel formulas! thanks in advance!
B D E F G H 1 1 2 You have looked at the current financial statements for Reigle Homes, Co. The company has an EBIT of $2.95 million this year. Depreciation, the increase in net working capital, and capital spending were $235,000, $105,000, and $475,000, respectively. You expect that over the next five years, EBIT will grow at 15 percent per year, depreciation and capital spending will grow at 20 percent per year, and NWC will grow at 10 percent per year. The company has $19.5 million in debt and 400,000 shares outstanding. After Year 5, the adjusted cash flow from assets is expected to grow at 3.5 percent indefinitely. The company's WACC is 9.25 percent, and the tax rate is 22 percent. What is the price per share of the company's stock? 5 6 7 $ $ $ EBIT Depreciation Change in NWC Capital spending Increase per year EBIT Depreciation Change in NWC 2,950,000 235,000 105,000 475,000 9 10 11 12 13 14 15% 20% 10% One talenandinn B D E F G H Change in NWC Capital spending Value of debt Shares outstanding Terminal growth rate WACC Tax rate 10% 20% 19,500,000 400,000 3.50% 9.25% 22% 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 Complete the following analysis. Do not hard code values in your calculations. $ SSSSSS EBIT Depreciation Taxes Capital spending Change in NWC ACFA Year 1 3,392,500 $ 282,000 746,350 570,000 115,500 2,242,650 $ Year 2 3,901,375 $ 338,400 858,303 684,000 127,050 2,570,423 $ Year 3 4,486,581 $ 406,080 987,048 820,800 139,755 2,945,058 $ Year 4 5,159,568 $ 487,296 1,135,105 984,960 153,731 3,373,069 $ Year 5 5,933,504 584,755 1,305,371 1,181,952 169,104 3,861,833 $ Year 6 ACFA A H 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 ===SSES BES B D E F G Complete the following analysis. Do not hard code values in your calculations. Year 1 Year 2 Year 3 Year 4 EBIT $ 3,392,500 $ 3,901,375 $ 4,486,581 $ 5,159,568 $ Depreciation 282,000 338,400 406,080 487,296 Taxes 746,350 858,303 987,048 1,135,105 Capital spending 570,000 684,000 820,800 984,960 Change in NWC 115,500 127,050 139,755 153,731 ACFA $ 2,242,650 $ 2,570,423 $ 2,945,058 $ 3,373,069 $ Year 6 ACFA Year 5 5,933,504 584,755 1,305,371 1,181,952 169,104 3,861,833 Terminal value Company value Value of equity 39 Price per share 41 Step by Step Solution
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