bitious business graduates, Boris andsabelle, are considering purchasing Premier Pizza, a frozen pizza manufa ted annual sales for the coming year are $10 million, with operating costs equal to 72% of sales, depreciation is uired annual investment in equipment is 6% of sales Sales, costs, and investments are expected to grow 3% in s of their analysis of the industry, Boris and Isabelle anticipate financing their company with 28% debt. The requ in the debt will be 6% and the required rate of return on the equity will be 13%. Premier Pizza's corporate tax rat Interest rate is 4% and the market risk premium is 8%. is the maximum price Boris and Isabelle should be willing to pay for Premier Pizza? (Round your answer to 2 price tional grocery chain, Fresh Foods, is also considering making an offer for Premier Pizza, The levered equity bet 10.7, its cost of debt is 5%, it is 35% debt financed, and it has a 35% tax rate. What is the maximum price that Fre be willing to pay for Premier Pizza? Assume that Fresh Foods's forecast for Premier's cash flows is the same as s. (Round your answer to 2 decimal places.) price 11 Two ambitious business graduates, Boris and Isabelle, are considering purchasing Premier Pizza, a frozen pizza manufacturer. Forecasted annual sales for the coming year are $10.4 million, with operating costs equal to 79% of sales, depreciation is 6% of sales. and required annual investment in equipment is 4% of sales. Sales, costs, and investments are expected to grow 4% in perpetuity. On the basis of their analysis of the industry, Boris and Isabelle anticipate financing their company with 26% debt. The required rate of return on the debt will be 5% and the required rate of return on the equity will be 18% Premier Pizza's corporate tax rate is 35%. The tisk free interest rate is 3% and the market risk premium is 7% a. What is the maximum price Boris and Isabelle should be willing to pay for Premier Pizza? (Round your answer to 2 decimal places.) Maximum price million b. A national grocery chain, Fresh Foods, is also considering making an offer for Premier Pizza. The levered equity beta of the grocery chain is 05. Its cost of debtis 4%, it is 38% debt-financed, and it has a 35% tax rate. What is the maximum price that Fresh Foods should be willing to pay for Premier Pizza? Assume that Fresh Foods's forecast for Premier's cash flows is the same as Boris and Isabelle's (Round your answer to 2 decimal places.) Maximum price $0