In the year in which it intends to go public, a firm has revenues of $32 million and net income after taxes of $2.5 million. The firm has no debt, and revenue is expected to grow at 24% annually for the next five years and 4% annually thereafter.Net profit margins (the ratio of net income to revenue) are expected remain constant throughout.Capital expenditures are expected to grow in line with depreciation and working capital requirements are minimal.The average beta of a publicly traded company in this industry is 1.30 and the average debt/equity ratio is 25%.The firm is managed very conservatively and does not intend to borrow through the foreseeable future.The Treasury bond rate is 5% and the tax rate is 20%.The normal spread between the return on stocks and the risk free rate of return is believed to be 6%.Reflecting the slower growth rate in the sixth year and beyond, the firm's discount rate is expected to decline to the industry average cost of capital of 12%. Estimate the value of the firm's equity.