Big Mo Lawn Service expects next year's cash flow from operations before interest and taxes to be $$1$ million, and expects this will continue to grow at $7\%$ per year forever. However, in order to get this growth Big Mo needs to invest $25\%$ of each year's pre$-$tax cash flow. Their current tax rate $=20\%.$ Next year's depreciation will be $$100,000$ and will also grow at the same rate as operating cash flows $($i$.$e$.,7\%).$ Required rate of return is $14\%.$ Big Mo has debt of $$1,175,000.$ Shares outstanding are $100,000.$ You MUST show your work.

What is the total value of the firm? $(3$ points$)$

What is the value of Big Mo's equity per share? $(3$ points$)$