Do not round intermediate calculations. Round any answer that requires the number of shares to the nearest whole share. Round any answer that requires a price to the nearest cent. Bobby Seale has 8 food trucks (Seale Flipper Pies) serving variations of Jamaican meat patties. They are doing supremely well, with each truck having annual revenues of $250,000 and net income of $125,000. He thinks he can go national with the concept and is trying to raise capital to buy 40 more trucks. Bobby estimates that he will need $7,000,000 get the trucks, outfit the kitchens, and train operators. He expects all of his trucks to be up and running in three years (that is, generating revenue and net income like his existing trucks). At that time he hopes to either go public or sell to an established chain of fixed-place restaurants. Bobby approaches his friend Eldridge Cleaver who is flush from his recent exit in the clothing business. Bobby and Eldridge look at exits of "Food Concept" businesses and see that they have been valued at between 4X sales and 7X net income. Eldridge remembers his experience with the RVN and tells Bobby that he requires a 48% return (EAR). Bobby currently owns all of the 600,000 shares in SFP. a. Suppose Bobby and Eldridge agree to price exit using the net-income multiple in year 3. How many shares does Eldridge receive in exchange for his $7,000,000 investment? b. What price will Eldridge be willing to pay (per share) if Bobby says that he intends to retain 100% stake of his original 8 trucks? (answer without dollar signs. #,###.##. So, if you think it is eight dollars and 33 cents, enter 8.33.) O