January 1st, 2021, you are a University of Tampa business graduate and you dream of opening a coffee shop in downtown Tampa. You assemble a business plan, and estimate that it will take $100,000 in startup capital to open your first caf, "Cool Beans." Your grandmother, MeeMaw, is so impressed by the business plan that she decides to give you your inheritance of $50,000 early so that you can become an entrepreneur. Your Uncle Silas is willing to become an equity investor and will give you $50,000 for 10% of the company. You incorporate Cool Beans, issuing 900,000 shares to yourself and 100,000 to Uncle Silas. You open your first location, and in the first year Cool Beans has EBIT of $75,000. 1. What is the implied value of cool Beans based on the capital contribution of Uncle Silas? (2pts) 2. Given a corporate tax rate of 21%, based on a pro forma business plan with a 10% annual growth rate and a 25% equity cost of capital, what is the estimated value of cool Beans based on Free Cash Flow? (2pts) 3. Did Uncle Silas get a good deal or is he trying to help out a family member? Justify your answer. (1pt) 4. What estimated growth rate would it take to make Uncle Silas' equity investment prudent given a 25% equity cost of capital? (5pts)