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You are asked to value Gamecocks Inc. using the relative valuation method. Gamecocks Inc.'s earnings forecast for next year (EPS (next year)) is $2.44. The valuation and earnings of comparable companies are provided below. What is your estimate for the company's stock price? Round to one decimal place. (Hint: Compute the corresponding valuation multiple of the comparables and take simple average across the three comparable companies. Then apply this average multiple to Gamecocks Inc.) Stock Price EPS (TTM) EPS (next year) EPS growth 5Y 5.1% $18.3 $26.3 $1.04 $1.12 $2.11 $1.22 $1.42 B 6.9% $55.9 $2.80 10.2% Numeric Answer: A company is projected to generate free cash flows of $40 million per year for the next two years, after which it is projected grow at a steady rate in perpetuity. The company's cost of capital is 13.0%. It has $20 million worth of debt and $8 million of cash. There are 10 million shares outstanding. If the appropriate terminal exit value for this company is 15, what's your estimate of the company's stock price? Round to one decimal place. Numeric Answer: You are valuing Soda City Inc. It has $100 million of debt, $90 million of cash, and 150 million shares outstanding. You estimate its cost of capital is 13.0%. You forecast that it will generate revenues of $700 million and $800 million over the next two years. Projected operating profit margin is 20%, tax rate is 30%, reinvestment rate is 20%, and terminal exit value multiple at the end of year 2 is 15. What is your estimate of its share price? Round to one decimal place. (Hint: Compute projected FCFF for years 1 and 2 based on info provided, compute terminal value using the exit multiple method, discount it all to find EV, walk the bridge to Equity, divide by number of shares outstanding.) Numeric