Jasper Holdings Ltd achieved sales of $400 million in 2019. Analysts expect Jasper Holdings Ltd's sales to grow at 10% p.a. in 2020 but this growth will slow by 1% p.a. to a long-run growth rate of 5% p.a. by 2025. EBIT is expected to be 9% of sales, increases in net working capital requirements to be 7% of any increase in sales, and net investment (capital expenditures in excess of depreciation) to be 6% of any increase in sales. Jasper Holdings Ltd has $45 million in cash, $66 million in long-term debt, and 13 million shares outstanding. Assume a tax rate of 30% and a weighted average cost of capital of 11%. Jasper's Free Cash Flows: 2019 400 ($ millions) Sales Growth versus prior year EBIT (9% of Sales) Less Income Tax (30% EBIT) Less Net Investment (6% ASales) Less: Inc. in NWC (7% ASales) FREE CASH FLOW 2020 2021 2022 2023 2024 2025 440.0 479.6 518.0 554.2 587.5 616.9 10.00% 9.00% 8.00% 7.00% 6.00% 5.00% 39.6 43.2 46.6 49.9 52.9 55.5 11.9 12.9 14.0 15.0 15.9 16.7 2.4 2.4 2.3 2.2 2.0 1.8 2.8 2.7 2.5 2.3 2.1 22.5 25.1 27.6 30.2 32.7 35.0 2.8 A. Using the free cash flow forecast and the assumed long-term growth rate of 5% p.a. after year 2025, calculate Jasper Holdings Ltd's terminal enterprise value in year 2025. (4 marks) B. Calculate current Jasper's enterprise value. (6 marks) C. What is your estimate of the value per share of Jasper in early 2020? (4 marks) D. What is your estimate of Jasper's stock value per share in part (c) above if the free cash flow at the end of year 2020 is $22.5 million and such free cash flow will grow by 5% p.a. from year 2020 onwards? (6 marks)