Projections for Dragon Inc are shown below. Assume a WACC of 7.0%, a Cost of Equity of 11.5%, a risk-free rate of 2.5% and average inflation of 2.1%. Calculate the Terminal Value for Dragon Inc. in year 5. What perpetuity growth rate did you use? Explain your choice. What EBITDA multiple (Exit Multiple) is implied by your terminal value? Year Actual 1 2 3 4 5 CAGR NOPLAT $7,200 $7,402 $7,609 $7,822 $8,041 $8,266 2.8% + Depreciation 1,605 1,642 1,680 1,718 1,758 1,798 2.3% - Capital 3,980 4,060 4,141 4,224 4,308 4,394 expenditures 2.0% - Increase in net 1,990 2,030 2,070 2,112 WC 2,154 2,200 2.0% Free Cash Flow 2,835 2,954 3,077 3,205 3,337 3,328 3.3% EBITDA 9,200 9,456 9,600 10,299 10,823 11,000 3.6% your work. Be sure to answer all four parts of this question. a) Calculate the terminal value (10 points) b) What perpetuity growth rate did you use? Explain your choice. (5 points) c) What EBITDA multiple (Exit Multiple) is implied by your terminal value? (2.5 points) d) What is the Present Value of your terminal value? (2.5 points) Projections for Dragon Inc are shown below. Assume a WACC of 7.0%, a Cost of Equity of 11.5%, a risk-free rate of 2.5% and average inflation of 2.1%. Calculate the Terminal Value for Dragon Inc. in year 5. What perpetuity growth rate did you use? Explain your choice. What EBITDA multiple (Exit Multiple) is implied by your terminal value? Year Actual 1 2 3 4 5 CAGR NOPLAT $7,200 $7,402 $7,609 $7,822 $8,041 $8,266 2.8% + Depreciation 1,605 1,642 1,680 1,718 1,758 1,798 2.3% - Capital 3,980 4,060 4,141 4,224 4,308 4,394 expenditures 2.0% - Increase in net 1,990 2,030 2,070 2,112 WC 2,154 2,200 2.0% Free Cash Flow 2,835 2,954 3,077 3,205 3,337 3,328 3.3% EBITDA 9,200 9,456 9,600 10,299 10,823 11,000 3.6% your work. Be sure to answer all four parts of this question. a) Calculate the terminal value (10 points) b) What perpetuity growth rate did you use? Explain your choice. (5 points) c) What EBITDA multiple (Exit Multiple) is implied by your terminal value? (2.5 points) d) What is the Present Value of your terminal value? (2.5 points)