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You have looked at the current financial statements for J&R Homes, Company. The company has an EBIT of $ 3 . 3 5 million this

You have looked at the current financial statements for J&R Homes, Company. The company has an EBIT of $3.35 million this year. Depreciation, the increase in net working capital, and capital spending were $295,000 $125,000, and $535,000, 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 per year, and NWC will grow at 10 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 companys WACC is 8.6 percent and the tax rate is 22 percent. What is the price per share of the company's stock?
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