An analyst following Barlow Energy has compiled the following information in preparation for additional analysis she has to ibclude in a report she has been asked to produce (data in $1million)

Calcualte the theoretical value of Barlow Energy's equity. Show all work.

Calculatr the theoretical value of Barlow Energy's stock per share, if currently in the capital market there are 80 million shares outstanding. Show all work.

Security Type Market Value Before-Tax Cost (Return) Bonds $600 7.5% Common Stock $700 14.0% Total $1,500 Net income $125 Investment in working capital $30 Investment in fixed capital $100 New debt borrowing $100 Debt repayment $60 Depreciation $50 Tax rate 40% Long-term growth rate of FCFE 496 Interest payment $45