Global is considering a new 5-year project. Initial investment in work cell =$1,000,000 Straight-line depreciation to zero with a useful life of 25 years. At the end of year 5 , can sell the work cell for $650,000 Initial investment in NWC =$80,000 Starting from year 1 , additional annual sales =$750,000 Annual expenses are 40% of sales At the end of year 5, NWC reclaim rate =80% Tax rate =21% Debt: 25,000 bonds outstanding 12 years remaining until maturity Annual coupon payments at a rate of 6% APR Current price =$1,060 Face value =$1,000 Equity: 500,000 shares outstanding Current price =$50 Shareholder's equity =$2 million Beta =1.5 Risk-free rate =3.5% Expected market premium =5.5% 8. You are considering whether you should purchase Global's common stock. Global has just paid out a quarterly dividend of $1.50. You don't own a share yet, so you didn't get this dividend. After some analysis, you expect the dividends to increase by 1.5% per quarter for the next 10 years After then, you expect the dividends to increase by 0.6% per quarter. If your discount rate is 14% APR, what is the implied share price? ( 20 points)