$7.$ ELF Enterprises had sales of $$100$ million last year. The firm's costs are $75\%$ of sales and the firm targets a net investment that is $10\%$ of its sales. The expected growth rate for the next $5$ years is $8\%.$ The growth rate is expected to stabilize at $4\%,$ thereafter. The company$$s outstanding debt is currently valued at $$125$ million; its estimated excess cash amount is $35$ million. There are $25$ million shares of stock outstanding and investors require a return of $12$ percent return on the company$$s stock. The corporate tax rate is $30$ percent. What is your estimate of the current stock price?

$8.$ AGE Corporation had sales of $$400$ million last year. The firm has a WACC of $15\%,$ which it is expected to be the same in the future. The current estimated cost of debt is $8\%.$ AGE Corp has an outstanding perpetual bond that pays $4\%$ interest annually and has a face value of $$50$ million. The firm has an excess cash of $$125$ million and intends to keep that amount of excess cash in the future. It has outstanding shares of $20$ million. Safe assumptions regarding the next five years are given below $($Depreciation expenses and CAPEX are measured as a percentage of sales, where the change in NWC is a result of the changes in sales$).$ It is expected that the firm will enter a stable stage starting in the sixth year and the FCFs will grow by $5\%$ annually. The corporate tax rate is $30$ percent. What is your estimate of the current stock price?$(15$ points$)$ AGE Corporation had sales of $$400$ million last year. The firm has a WACC of

$15\%,$ which it is expected to be the same in the future. The current estimated cost of debt is $8\%.$ AGE Corp has an outstanding perpetual bond that pays $4\%$ interest annually and has a face value of $$50$ million. The firm has an excess cash of $$125$ million and intends to keep that amount of excess cash in the future. It has outstanding shares of $20$ million. Safe assumptions regarding the next five years are given below $($Depreciation expenses and CAPEX are measured as a percentage of sales, where the change in NWC is a result of the

changes in sales$).$ It is expected that the firm will enter a stable stage starting in the sixth year and the FCFs will grow by $5\%$ annually. The corporate tax rate is $30$ percent. What is your

estimate of the current stock price?