You have looked at the current financial statements for J&R Homes, Company. The company has an EBIT of $$4,750,000$ this year. Depreciation, the increase in net working capital, and capital spending were $$320,000,$$$160,000,$ and $$570,000,$ respectively. You expect that over the next five years, EBIT will grow at $20$ percent per year, depreciation and capital spending will grow at $10$ per year, and NWC will grow at $15$ per year. The company has $$27,000,000$ in debt and $475,000$ shares outstanding. After Year $5,$ the adjusted cash flow from assets is expected to grow at $3\mathrm{.}55$ percent, indefinitely. The company's WACC is $9.$& percent and the tax rate is $25$ percent. What is the price per share of the company's stock?

Note: Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

Share price

Prev

$11$ of $11$

Next

Search

You have looked at the current financial statements for J&R Homes, Company. The company has an EBIT of $$4,750,000$ this year. Depreciation, the increase in net working capital, and capital spending were $$320,000,$$$160,000,$ and $$570,000,$ respectively. You expect that over the next five years, EBIT will grow at $20$ percent per year, depreciation and capital spending will grow at $10$ per year, and NWC will grow at $15$ per year. The company has $$27,000,000$ in debt and $475,000$ shares outstanding. After Year $5,$ the adjusted cash flow from assets is expected to grow at $3\mathrm{.}55$ percent, indefinitely. The company's WACC is $9\mathrm{.}8$ percent and the tax rate is $25$ percent. What is the price per share of the company's stock?

Note: Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

Share price