7. You have been asked to do a discounted cash flow valuation of a firm and have been given the following partial inputs to the valuation. The firm has a tax rate of 40%.

Estimate the value of the firm today.

Year Growth rate EBIT (1-t) 20% 20% 20% 5% 100 120 144 151.2 Cost of Equity Cost of Debt Debt Ratio 15.00% | 14.50% | 14.00% | 12.50% 7% 7% 7% 7% 10% 20% 30% 40% Return on Capital 25% 25% 25% 15%