Please solve the problem below:

This is a two-stage FCFF valuation model for Fisher Corporation. The assumptions are:

• Sales were $100 million in the year just ended. Sales will grow at 20% annually for three years, and then at 6% annually thereafter.
• EBIT will be 40% of sales.
• Depreciation is 4% of the current year's sales.
• Capital expenditures are 4% of the current year's sales plus 40% of the current year's increase in sales.
• The investment in working capital will be 10% of the current year's increase in sales.
• The income tax rate for Fisher is 25%.
• The weighted average cost of capital is 12%.
• Fisher has 12 million outstanding shares.
• Fisher has $75 million of outstanding debt.

This model establishes the value per share based on these assumptions. Assume that all of the calculations are correct.

Change the assumption that the long-term growth rate in sales is 6% to a long-term rate of 7%. What is the value per share with this new assumption? (Enter an amount to the nearest $0.01. Leave the $ sign off.)

4 5 6% 194.16 We will use FCFF = EBIT(1-T) + Depr - Capex - Invwc Year 0 1 2 3 growth rate for Sale: 20% 20% 20% Sales 100 120.00 144.00 172.80 EBIT 48.00 57.60 69.12 Depreciation 4.80 5.76 6.91 Capex 12.80 15.36 18.43 NWC invest 2.00 2.40 2.88 6% 183.17 73.27 7.33 77.66 7.77 11.47 12.16 1.04 1.10 43.20 51.84 54.95 58.25 5.76 7.77 12.16 EBIT(1 - tax rate) Depreciation Capex NWC invest FCFF PV of FCFF g in FCFF 36.00 4.80 12.80 2.00 26.00 23.21 15.36 2.40 1.10 6.91 7.33 18.43 11.47 2.88 1.04 37.44 49.77 26.65 31.63 0.2 0.329231 31.20 24.87 52.75 29.93 0.2 0.06 Terminal value at t=3 829.44