It's December 30th, 2007 and you are an analyst from a famous investment bank returning home after a long day's work. When you arrive at your house you find a spaceship parked on your lawn and Chewbacca waiting for you with a business proposal: news has reached even his planet that this funny-named company, Google Inc., is taking over the Earth. Chewbacca wants your opinion on whether he should invest in it or not. After defeating the Empire he has become a successful business manager and owner of an intergalactic conglomerate of several companies. Following the initial shock of meeting Chewbacca in person, you negotiate a handsome fee (and some pics of you and him to show around) and get down to work. You promise Chewbacca a valuation based on proforma estimates for 2008 and 2009. Assume a tax rate of 35%, a market risk premium of 5%, and a risk free rate of 3.96%. Google's current share price is $581.29 and it has 317.93 million shares outstanding, with a total market capitalization worth $184.81Bi. The firm's equity beta is 1.27. Analysing Google's balance sheet you find that it currently has no debt outstanding. You've also computed the following data for CAPEX and changes in NWC:

2007 2008E 2009E CAPEX 2,402 2,641 2,200 A(NWC) 243 293 Google's Proforma Income Statement (USD Millions) 2007 2008E 2009E Sales 11,654 16,519 22,384 Cost of Goods Sold 1,709 2,801 3,925 Gross Profit 9,944 13,718 18,459 Selling, General & Admin. (SGA) 3,024 4,205 5,955 Depreciation 1,836 2,586 3,312 EBIT 5,084 6,927 9,192 Taxable Income 5,673 7,654 10,142 Taxes 1,470 1,815 2,535 Net Income 4,204 5,838 7,606