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You have been asked to examine a valuation done of Loden Construction, a real estate and construction company. You have been provided with the income
You have been asked to examine a valuation done of Loden Construction, a real estate and construction company. You have been provided with the income statement for the last year:
Revenues
Operating Expenses
Depr. & Amort.
EBIT
In the valuation, the analyst has assumed a growth rate of forever in revenues, operating income and depreciation, and assumed capital expenditures of $ million for next year In addition, the analyst has assumed that noncash working capital will be of the change in revenues. Tax rate
What is the reinvestment rate?
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