2. You have been provided the following information on CEL Inc, a manufacturer of highend stereo systems. In the most recent year, which was a bad one, the company made only S40 million in net income. It expects next year to be more normal. The book value of equity at the company is S1 billion, and the average return on equity over the previous 10 years (assumed to be a normal period) was 10%. The company expects to make $80 million in new capital expenditures next year. It expects depreciation, which was $60 million this year, to grow 10% next year. The company had revenues of $1.5 billion this year, and it maintained a non-cash working capital investment of 10% of revenues. It expects revenues to increase 20% next year and working capital to decline to 9.5% of revenues. The firm expects to maintain its existing debt policy (in market value terms). The market value of equity is $1.5 billion and the book value of equity is 500 million. The debt outstanding (in both book and market terms) is $500 million