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QUESTION 1 15 points Crazytown Motors is expected to have an EBIT of $680,000 next year. Depreciation, the increase in net working capital and capital

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QUESTION 1 15 points Crazytown Motors is expected to have an EBIT of $680,000 next year. Depreciation, the increase in net working capital and capital spending are expected to $45,000, 59,000, and $40,000, respectively All cash flow items are expected to grow at 6 percent per year for two years. After Year 3, the CFA is expected to grow at 3 percent indefinitely The company currently has $3 million in debt and 250,000 shares outstanding. The company's WACC is 9.5 percent and the tax rate is 20 percent What is the present value of terminal value? Show your steps For the toolbar, press ALT F10 (PC) or ALT+FN+F10(Mac) B 1 0 5 Paragraph Arial 10pt Z V v V % OQ EE SEE X X, TTTT - TT 99 22 . E # ) + QUESTION 2 20 points Sant Antwe Crazytown Motors is expected to have an EBIT of S680,000 next year. Depreciation, the increase in net working capital and capital spending are expected to be $45.000, 59,000, and $40.000, respectively All cash flow items are expected to grow at 6 percent per year for two years After Year 3, the CFA is expected to grow at 3 percent indefinitely 3 The company currently has $3 million in debt and 250,000 shares outstanding The company's WACC is 95 percent and the tax rate is 20 percent What is the price per share of the company's stock? Show your steps For the toolbar, press ALT+F10 (PC) or ALTAFN+F 10 (Mac) Ips Paragraph Arial 10pt : A2 T: % @ Q 6F X X 8 + T . 99 92 BE O V V V Imi

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