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You are trying to estimate the fundamental growth in earnings for Janus Enterprises for the next 5 years and have obtained the following information: 13)

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You are trying to estimate the fundamental growth in earnings for Janus Enterprises for the next 5 years and have obtained the following information: 13) In the most recent year, Janus reported operating income of $100 million on book capital invested (at the beginning of the period) of $ 800 million. The firm faced a tax rate of 40% during the period. The firm also reported capital expenditures of $140 million and depreciation of $100 million in the most recent year. Noncash working capital increased by $10 million during the year. Estimate the after-tax return on capital last year for Janus; Estimate the reinvestment rate last year for Janus

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