Seinfeld is a privately owned entrainment company. The owner Cosmo Kramer is entirely undiversified and has grandiose plans (Kramer being Kramer) to expand the business over 5 years and then take the company IPO. You estimate that Seinfeld would generate $15 million in after-tax operating income next year on an invested capital of $100 million. You expect the company to grow at 12% for each of the following 4 years sustaining the same returns. After the 5th year, Seinfeld will be in perpetuity growing at 2%. ROIC is expected to be at 8% in stable growth phase. The unlevered beta of public entertainment companies is 0.8 and the correlation of these businesses with the market is 0.4. The T-Bond rate is 2.1% and implied equity risk premium is 6%. Seinfeld is 100% equity funded and the cash balance is negligible. a) Estimate the value of Seinfeld today (5pts)