A guest on the popular show Great White Tank is attempting to raise money for her new company, Feline Fancy, which makes cat toys. The potential investor wants to value the company, which is privately held. Because of this, she uses the pure play approach to determine that the appropriate WACC for the company is 8 per cent. The relevant tax rate is 30 per cent.

Feline Fancy currently has $40 million in debt and 3.5 million shares outstanding. Sales this year are expected to be $30 million, and that amount is expected to grow at 15 per cent per year for the following four years. After that, sales are expected to grow at 2 per cent indefinitely. EBIT this year will be $10 million. EBIT, depreciation, capital spending and the change in net working capital will grow at the same rate as sales. What value would you assign to Feline Fancy as a whole? What price per share would you assign?