2. (FCFF valuation model) Build a valuation model for Dragon Limited based on the following information:

Sales were $100 million in the year just ended. Sales will grow at 100% annually for two years, and then at 5% annually forever.

EBIT will be 30% of sales.

Depreciation is 4% of the current years sales

Capital expenditures are 4% of the current years sales plus 40% of the current years increase in sales

The investment in working capital will be 10% of the current years increase in sales

The income tax rate for Dragon Limited is 25%

The weighted average cost of capital is 12%

Dragon has 40 million outstanding shares

Dragon has $200 million of outstanding debt.

What is the Dragon Limited value per share?