Excess Earnings Valuation-Two-Year Investment Life--The One-Shot Tee-Shirt Company: At the end of Year 0, an investor creates a company by investing $1,500 in cash for stock, and the company uses all of the cash to buy t-shirts (inventory). At the end of Year 1, the company sells the t-shirts to a vendor for $2.420 but paying a liquidating dividend. The company has no operating expenses other than those related to the inventory does not collect the revenue in cash until the end of Year 2. At the end of Year 2, the company liquidates itself by (cost of goods sold) and does not pay income taxes. We show the company's income statement and balance sheet ES AND PROBLEMS P7.1 forecasts in Exhibit P7.1. For all parts of this problem, assume a discount rate of 10%. EXHIBIT P7.1 Income Statement and Balance Sheet Forecasts for the One-Shot Tee-Shirt Company ONE-SHOT TEE-SHIRT COMPANY Income Statement and Balance Sheet Year o Year 1 Year 2 $ Income Statement Revenue. Expenses Earnings $2,420 -1,500 $ 920 0 0 $ Balance Sheet Cash. Receivable Inventory (t-shirts).. Total assets. 0 $ 0 $ 0 $0 0 2,420 1,500 0 0 $1,500 $2,420 $ 0 Common stock. Retained earnings Total equities $1,500 $1,500 920 $2,420 $1,500 -1,500 $ 0 $1,500 b. c. Value the company as of the end of Year O using the discounted cash flow valuation model. Value the company as of the end of Year O using the excess cash flow valuation method. Value the company as of the end of Year O using the residual earnings valuation method. Excess Earnings Valuation with an Intangible Asset --TY Company: At the end of Year