Boca Corp is considering acquiring a firm and you have been asked to develop a stock valuation for the firm The estimated growth rate is 17% for the first 3 years after which the firm slows down to a steady state growth rate of 8.5% Year 1 retenue is $2,000,000. Net working capital is estimated to be 20% of sales per year. The firm also builds up initial inventory of 15% of the first year's anticipated COGS before beginning the project COGS is 50% of annual sales for each year and SG&A is 10% of revenues per year. Depreciation is $250,000 per year. In addition, the firm invests in fixed assets every year to the amount of $195,000. The firm's tax rate 35% and the firm's WACC is 15%. Note: While working this problem out, assume that the firm will not try to recoup any remaining working capital at the end of year 3. The firm will also not make any adjustment for gross fixed assets and depreciation at the end of year 3. The firm has debt of $4,600,000 and cash of $500,000. If there are 50,000 shares outstanding, what is stock price? (3pts) Using the same information from above if the comparable peer EBIT multiple is 3.5 and the EBITDA multiple is 42, what is the stock price using these multiples? Boca Corp is considering acquiring a firm and you have been asked to develop a stock valuation for the firm The estimated growth rate is 17% for the first 3 years after which the firm slows down to a steady state growth rate of 8.5% Year 1 retenue is $2,000,000. Net working capital is estimated to be 20% of sales per year. The firm also builds up initial inventory of 15% of the first year's anticipated COGS before beginning the project COGS is 50% of annual sales for each year and SG&A is 10% of revenues per year. Depreciation is $250,000 per year. In addition, the firm invests in fixed assets every year to the amount of $195,000. The firm's tax rate 35% and the firm's WACC is 15%. Note: While working this problem out, assume that the firm will not try to recoup any remaining working capital at the end of year 3. The firm will also not make any adjustment for gross fixed assets and depreciation at the end of year 3. The firm has debt of $4,600,000 and cash of $500,000. If there are 50,000 shares outstanding, what is stock price? (3pts) Using the same information from above if the comparable peer EBIT multiple is 3.5 and the EBITDA multiple is 42, what is the stock price using these multiples