Full Boat Manufacturing has projected sales of $$121\mathrm{.}5$ million next year. Costs are

expected to be $$72$ million and net investment is expected to be $$14\mathrm{.}15$ million. Each of

these values is expected to grow at $14$ percent the following year, with the growth rate

declining by $2$ percent per year until the growth rate reaches $6$ percent, where it is

expected to remain indefinitely. There are $6$ million shares of stock outstanding and

investors require a return of $12$ percent return on the company's stock. The corporate tax

rate is $23$ percent.

a$.$ What is your estimate of the current stock price? $($Do not round intermediate

calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

b$.$ Suppose instead that you estimate the terminal value of the company using a PE

multiple. The industry PE multiple is $12.$ What is your new estimate of the company's

stock price? $($Do not round intermediate calculations and round your answer to $2$

decimal places, e$.$g$.,32\mathrm{.}16.)$