Paul has finally opened his coffee and tea shop, 'Finance Brews', in downtown Pocatello. However, Paul is realizing that selling beverages is not his calling, and he is looking to sell his shop and come up with a good valuation of his stake in the firm. Since opening, Paul has taken Finance Brews public, and there are 100,000 shares outstanding of which Paul owns 51,000. Finance Brews is a levered firm with $8,000,000 in long-term debt that costs them 7% interest annually. Paul has projected the following net income (after taxes and interest) and partial balance sheet items for the following three years, which are given in the table below. Paul knows for certain that Finance Brews will have a long-term growth of the free cash flows at a constant rate of 4% after year 3. Paul has been paying a marginal tax rate of 25% and the current stock price in the market is $90 per share. (3 Points) What is the intrinsic value of the firm's equity? (2 Points) What is the intrinsic stock price? (2 Points) A potential buyer is offering Paul $7,700,000 for his controlling stake in the firm. Should Paul take this deal? Explain. Paul has finally opened his coffee and tea shop, 'Finance Brews', in downtown Pocatello. However, Paul is realizing that selling beverages is not his calling, and he is looking to sell his shop and come up with a good valuation of his stake in the firm. Since opening, Paul has taken Finance Brews public, and there are 100,000 shares outstanding of which Paul owns 51,000. Finance Brews is a levered firm with $8,000,000 in long-term debt that costs them 7% interest annually. Paul has projected the following net income (after taxes and interest) and partial balance sheet items for the following three years, which are given in the table below. Paul knows for certain that Finance Brews will have a long-term growth of the free cash flows at a constant rate of 4% after year 3. Paul has been paying a marginal tax rate of 25% and the current stock price in the market is $90 per share. (3 Points) What is the intrinsic value of the firm's equity? (2 Points) What is the intrinsic stock price? (2 Points) A potential buyer is offering Paul $7,700,000 for his controlling stake in the firm. Should Paul take this deal? Explain