Please answer all the parts of the questions properly.

1. By what percentage is Kappas EBITDA expected to grow over the five-year period? By how much it would grow if Kappas market share remained at 10%?

2. Compute the EBITDA growth on annual basis?

Reminder: By cutting administrative costs immediately and redirecting resources to new product development, sales, and

marketing, you believe Kappa can increase its market share from 10% to 15% over the next five years.

i = (FV/PV)^1.5 -1

Table 7.7 Spreadsheet Pro Forma Income Statement fo Kappa, 2021-2026 Year 2021 2022 2023 2024 2025 2026 75,000 88,358 103,234 119,777 138,149 158,526 Income Statement ($ 000) 1 Sales 2 Cost of Goods Sold 3 Raw Materials 4 Direct Labor Costs 5 Gross Profit 6 Sales and Marketing 7 Administrative 8 EBITDA 9 Depreciation 10 EBIT 11 Interest Expense (net) 12 Pretax Income 13 Income Tax 14 Net Income (16,000) (18,665) (21,593) (24,808) (28,333) (32,193) (18,000) (21,622) (25,757) (30.471) (35,834) (41.925) 41,000 48,071 55,883 64,498 73,982 84,407 (11,250) (14,579) (18,582) (23,356) (27.630) (31,705) (13,500) (13,254) (15,485) (16,769) (17,959) (20,608) 16,250 20,238 21,816 24,373 28,393 32,094 (5,500) (5,450) (5,405) (6,865) (7,678) (7,710) 10.750 14,788 16,411 17,508 20,715 24,383 (75) (6,800) 16,800) (6,800) (7,820) (8,160) 10,675 7.988 9,611 10,708 12,895 16,223 (3,736) (2,796) (3,364) (3,748) (4,513) (5,678) 6,939 5,193 6,247 6,960 8,382 10,545 Table 7.7 Spreadsheet Pro Forma Income Statement fo Kappa, 2021-2026 Year 2021 2022 2023 2024 2025 2026 75,000 88,358 103,234 119,777 138,149 158,526 Income Statement ($ 000) 1 Sales 2 Cost of Goods Sold 3 Raw Materials 4 Direct Labor Costs 5 Gross Profit 6 Sales and Marketing 7 Administrative 8 EBITDA 9 Depreciation 10 EBIT 11 Interest Expense (net) 12 Pretax Income 13 Income Tax 14 Net Income (16,000) (18,665) (21,593) (24,808) (28,333) (32,193) (18,000) (21,622) (25,757) (30.471) (35,834) (41.925) 41,000 48,071 55,883 64,498 73,982 84,407 (11,250) (14,579) (18,582) (23,356) (27.630) (31,705) (13,500) (13,254) (15,485) (16,769) (17,959) (20,608) 16,250 20,238 21,816 24,373 28,393 32,094 (5,500) (5,450) (5,405) (6,865) (7,678) (7,710) 10.750 14,788 16,411 17,508 20,715 24,383 (75) (6,800) 16,800) (6,800) (7,820) (8,160) 10,675 7.988 9,611 10,708 12,895 16,223 (3,736) (2,796) (3,364) (3,748) (4,513) (5,678) 6,939 5,193 6,247 6,960 8,382 10,545