Question 11 (8 points) Saved Green Zebra wants to expand its specialty convenience stores into the Califronia market. While GZ is currently holding surplus cash of $7,500,000 to support the planned expansion, it is not enough. In order to raise money for the expansion, GZ has to provide a valuation of its shares in order to raise money for the expansion. They had recently hired a PSU alum to estimate its cost of capital, which is 11.5%. Currently, Green Zebra has total interest bearing debt outstanding of $25m. EBIT fon GZ is forecast next year (T1) at $22.5m and is expected to grow at 25% in the following year (T2). Net working capital spending, PPE spending, and depreciation as a % of EBIT are expected to be 15%, 11%, and 7%, respectively. GZ has 20 million shares outstanding and faces a tax rate of 20%. By the end of year 2, GZ won't be at maturity but believes it will be valued at the industry EV/EBIT multiple of 3. Show all work on your Excel file. Choose the BEST answer. Estimate operating cash flows for Year 2. 13,725,000 18,000,000 19,575,000 24,468,750 17,156,250 MacBook Air DOO F3 COD F4 F5 F F7 FB