For the following stable growth firm, calculate:

Cost of equity using CAPM, having risk free rate to be $3\%,$ market risk premium $7\%,$ and equity beta $1\mathrm{.}6$

$(1$ mark$)$

Current growth rate with required rate of return on equity of $14\%$ and retention ratio of $80\%.$

$(1$ mark$)$Discuss for which firms EBITDA can be used, instead of FCF$,$ for investment analysis and valuations and why? $(2$ marks$)$

Explain how EBITDA multiple can be calculated for a private company valuation.

Calculate the present stock price using the current year's EPS of $$1\mathrm{.}4,$ a required return of $14\%,$ a retention ratio of $80\%,$ and the growth derived from part b$.(2$ mark$)$