show your work please

In addition to the financial statement, you also know that:

Tax rate = 40%

Depreciation of 2008: 30,000

Capital structure expenditure of 2008 is 80,000

INt rate on firms debt is 6%

Target capital structure for debt to equity to the sum of short term and long term debt divided by total assets, the rest is in equity. A comparable firm with similar capital structure has a beta of 1.5 and a price of ebitda ratio of 15. The risk free rate is 1%. Market risk premium is 8% . also you can assume that the firm is going to grow at a constant rate of 2% after the forecast period. Given the analyst forecast that the firm is going to grow by 20% for the next 2 years what is the firms instrinsic equity value at the end of 2008 based on forecast using DCF approach?

hint - FIND THE TERMINAL value USING BOTH APPROACHES

1. Given the following information: Income Statement (2008) $7,000.000 Sales Cost of goods sold 5,000.000 2,000.000 Gross Profit 1.700,000 300.000 Selling and administrative expenses Operating profit Interest expense Income before tax 0,000 250,000 Tax expense Net income 100.000 150,000 ala 008 $ 90,000 810,000 2007 Cash 80,000 Accounts receivable 800,000 720.000 Inventory Total Current assets 800,000 1.700,000 2,600.000 2.400.000 4,300,000 4,000,000 1,600,000 Fixed assets Total assets Accounts payable Bank loan Total current liabilities 500,000 400.000 100,000 100,000 600,000 500,000 Bonds payable Total liabilities 400,000 1,000,000 500,000 300,000 800,000 Common stock (20,000 shares) Retained earnings Total liabilities and shareholders'eq 500,000 2.800.000 2.700.000 4,300,000 4.000,000 For the income statement, operating profit is EBIT. For the balance sheet, treat bank loa as short term loans and bonds payable as long term loans. The market value of debt is equal to the sum of bank loans and bonds payable