1.You are reviewing the valuation of Henden Corp, a small industrial manufacturing company. The analyst has estimated a value of 800 million for the company, assuming that the firm is mature, growing at the inflation rate (10% per year) each year while maintaining a cost of capital of 15% forever. In arriving at her valuation, the analyst has assumed that the firm will not have to reinvest any of its after-tax operating income, since it is only growing at the inflation rate. If you believe the firm will be able to generate an excess return of 3% above its cost of capital in perpetuity, estimate the correct value for the firm.