1) Ward Corp. is expected to have an EBIT of $2,100,000 next year. Depreciation, the increase in net working capital, and capital spending are expected to be $169,000, $93,000, and $119,000, respectively. All are expected to grow at 18 percent per year for four years. The company currently has $15,000,000 in debt and 840,000 shares outstanding. After Year 5, the adjusted cash flow from assets is expected to grow at 2.5 percent indefinitely. The companys WACC is 8.4 percent and the tax rate is 40 percent. What is the price per share of the company's stock?

2) Photochronograph Corporation (PC) manufactures time series photographic equipment. It is currently at its target debtequity ratio of .61. Its considering building a new $71.6 million manufacturing facility. This new plant is expected to generate aftertax cash flows of $7.91 million in perpetuity. There are three financing options:

1. A new issue of common stock: The required return on the companys new equity is 15 percent.
2. A new issue of 20-year bonds: If the company issues these new bonds at an annual coupon rate of 7.1 percent, they will sell at par.
3. Increased use of accounts payable financing: Because this financing is part of the companys ongoing daily business, the company assigns it a cost that is the same as the overall firm WACC. Management has a target ratio of accounts payable to long-term debt of .11. (Assume there is no difference between the pretax and aftertax accounts payable cost.)

If the tax rate is 34 percent, what is the NPV of the new plant?