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Use excel formulas for answers You have looked at the current financial statements for Reigle Homes, Co. The company has an EBIT of $2.95 million
Use excel formulas for answers
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? Complete the following analysis. Do not hard code values in your calculations. Complete the following analysis. Do not hard code values in your calculations Step by Step Solution
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