(a) What is the value of equity as of the beginning of year 1? What is the forward P/E multiple (with respect to year 1 earnings) implied by your valuation? What is the trailing P/E multiple (with respect to year 0 earnings) implied by your valuation?

(b) What is the growth rate of profit after taxes assumed for year 6 and beyond? State the assumptions needed in order to answer this question.

Consider the following data for an All-equity firm