Pinder Ltd wants to estimate the value of Value Co using a DCF analysis. Last year, Value Cos revenues were $1,000. For the next five years, Pinder Ltd makes the following projects about Value Co. Value Cos sales are expected to grow by $100 each year. Value Cos EBIT margin is expected to remain constant at 40%. Value Cos depreciation is expected to be 10% of sales each year. The capital expenditures are expected to be 15% of sales for the next three years then 10% thereafter. There are no expected changes in Value Cos working capital. Value Cos free cash flows after this five year projection period is expected to grow at 1% per annum in perpetuity. The corporate tax rate is 30%. The market value of Value Cos debt is $600 and the market value of Value Cos equity is $3000. The cost of debt is 6%, the risk-free rate is 1%, the market risk premium is 10%, and the unlevered beta for comparable firms is 0.8. Based only on the information above, what is the equity value of Value Co, based on the DCF? (round to the nearest two decimal places)

Group of answer choices

a) $4010.36

b) None of the above.

c) $7530.71

d) $5603.13

e) $9935.13