A small corporation just reported a profit of $$1\mathrm{.}2$ million. These profits are forecasted to grow at $2\mathrm{.}2\%$ for the foreseeable future. The company has assets of $$2\mathrm{.}5$ million and liabilities of $$1\mathrm{.}7$ million. There are $250,000$ shares of common stock in the company.

According to the forecasted growth rate, what do you expect this company will have for a profit next year?

Assuming that investors require a $7\%$ rate of return, what is the value of this company$$s continuing operations $($what is the value of the company$$s future cash flows$)?$

What is the value of the company, considering pro$-$forma income statements and their balance sheet?

How much should an investor be willing to pay per share?

If the stock is currently trading for $$95$ in the secondary market place, should you buy the stock, based on your analysis?