Refer to the following data: Beta = 1.40, market premium = 10 percent, Long-term T-bond rate = 12 percent. Pre-tax cost of debt = 13.5 percent, Tax rate = 35 percent, Target debt-to-value ratio = 0.45. The working results for the past three years are given here:

(Rs crore)

1995 1996 1997 Sales 9.0 9.9 11.0 EBIT 4.5 4.95 5.5 Depreciation 0.72 0.72 0.72 The company has made capital expenditure of 0.72 crore each year in the last three years. It is expected to grow at 10 percent for the next three years and drop to 5 percent thereafter in line with growth in sales. Working capital is expected to be 15 percent of the sales. Additional depreciation for the next three years on the new equipment will be provided on straightline basis. Free cash flows are expected to grow at 5.5 percent in perpetuity after three years. Determine the value of the company.