Question: please answer in EXCEL FORMULAS with EXACT CELLS FROM THE PICTURE A1 D You have looked at the current financial statements for Reigle Homes, Co.
A1 D You have looked at the current financial statements for Reigle Homes, Co. The company has an EBIT of $295 million this year. Depreciation, the increase in net working capital and capital spending were $235,000 $105,000, and $475,000, respectively. You expect that over the next five years, EBIT wil grow at 15 percent per year, depreciation and capital spending will grow at 20 percent per year, and NWC will grow at 10 percent per year. The company has $19.5 million in debt and 400,000 shares outstanding. Aller Year 5, the adjusted cash flow from assets is expected to grow at 3.5 percent indefinitely. The company's WACC is 9 25 percent, and the tax rate is 22 percent. What is the price per share of the company's stock? 5 $ $ $ $ 3 9 2,950,000 235,000 105,000 475,000 10 11 12 EBIT Depreciation Change in NWC Capital spending Increase per year EBIT Depreciation Change in NWC Capital spending Value of debt Shares outstanding Terminal growth rate WACC Tax rate $ 34 15 16 17 15% 20% 10% 20% 19,500,000 400,000 3.50% 9.25% 22 Sheet1 SEADY AI 0 20 22 23 24 25 26 Year 5 Complete the following analysis. Do not hard code values in your calculations Year 1 Year 2 Year 3 Year 4 EBIT Depreciation Taxes Capital spending Change in NWC ACFA 29 30 23 Year 6 ACFA 14 Terminal value 15 16 Company value Value of equity 3 40 Price per share
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
