Suppose that a firm has just completed its 2021 financial year and is looking to estimate the value of their firm. To facilitate the process, the firm has provided their two most recent Balance Sheets and their 2021 Income Statement (see below): Balance Sheet Income Statement ASSETS: 2021 2020 2021 Cash 4,350 3,600 Sales 314,600 Accounts Receivable 9,540 29,520 Cost of Goods Sold (113,168) Inventories 21,300 46,350 Depreciation (140,800) Net Property Plant & Equipment 420,000 369,600 Operating Income (EBIT) 60,632 Total Assets 455,190 449,070 Interest Expense (31,768) Pretax Income 28,864 LIABILITIES: 2021 2020 Income Tax Expense (10,102) Accounts Payable 25,380 13,920 Net Income 18,762 Bank overdraft 9,120 9,120 Long-Term Debt 207,000 223,500 Total Liabilities 241,500 246,540 EQUITY: Common Stock Retained Earnings Total Equity Total Liabilities & Equity 2021 81,000 132,690 213,690 455,190 2020 81,000 121,530 202,530 449,070 The firm's senior management team believes that their free cash flows will grow by 10% in the first year (i.e. 2022), then by 7% every year for the next two years (i.e. 2023 and 2024) and then by 5% per year thereafter into perpetuity (i.e. 2025 onwards). Other pertinent details are as follows: The current risk-free rate is 3% and market risk premium is 9% 5-year historical equity beta is 1.34 There are currently 100,000 shares outstanding The yield-to-maturity on the existing debt is 6% The effective tax-rate is 35% The target debt-to-value ratio is 50% The 2021 cash balance of $4,350 is regarded as excess cash, and is not part of working capital. Given the senior management team's projections and assuming the excess cash could be used to pay down the debt, use the WACC approach to calculate: A. The value of the firm (i.e. Enterprise value) (25 marks) B. The value of Equity (3 marks) C. The value per share (2 marks) (Hint: Draw a timeline). Be sure to show all your work (i.e. supporting calculations)