Question: Adjusted Cash Flow from Assets [ LO 3 ] You have looked at the current financial statements for J&R Homes, Co . The company has
Adjusted Cash Flow from Assets LO You have looked at the current financial statements for J&R Homes, Co The company has an EBIT of $ million this year. Depreciation, the increase in net working capital, and capital spending were $$ and $ respectively. You expect that over the next five years, EBIT will grow at percent per year, depreciation and capital spending will grow at percent per year, and NWC will grow at percent per year. The company has $ million in debt and shares outstanding. After Year the adjusted cash flow from assets is expected to grow at percent indefinitely. The company's WACC is percent, and the tax rate is percent. What is the price per share of the company's stock?
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