DC Corp., a leader in developing and manufacturing medical device systems, reported EPS of $2.02 in 2019, and did not pay a dividend. This income is expected to grow 14% a year in 5 years (2020-2024) and 7% a year after that. Depreciation was reported as $2 million in 2019 and capital expenditures of $4.2 million. The company currently has 7 million shares outstanding. Working capital is expected to remain at 50% of revenue, and is worth $106 million in 2019 and is expected to grow 6% a year from 2020 to 2024 and 4% a year thereafter. The company expects to finance 10% of capital expenditure and working capital needs with debt. In 2019, DC had a beta of 1.2 and this beta is expected to decrease to 1.1 after 2024. The government bond interest rate is 7%). The market risk premium is 5.5%. a. Let's estimate free cash flow to owners for 2020-2024, assuming capital expenditures and depreciation grow at the same rate as earnings. b. Let's estimate the terminal value (end of 2024). Stable businesses in the industry