The following are excerpts from a company's balance sheet and income statement. Included also are important rates that may apply to the following valuation.
Randall-Hecho, Incorporated: Income Statement Projection	0 (Year Just Ended)	1	2	3	4	5
Price/Earnings Ratio	14.50	14.75	15.00	15.25	15.30	15.65
Profit (Earnings)	$24,630,542	$25,000,000	$28,125,000	$30,234,375	$32,501,953	$34,939,600
Shares Outstanding	2,500,000	2,400,000	2,300,000	2,200,000	2,100,000	2,000,000
Earnings Per Share	$9.85	$10.42	$12.23	$13.74	$15.48	$17.47
Interest Payments (Pre-Tax)	$500,000	$500,000	$500,000	$500,000	$500,000	$500,000
Randall-Hecho, Incorporated: Balance Sheet Projections	0	1	2	3	4	5
Working Capital	$4,315,000	$4,250,000	$4,500,000	$4,750,000	$4,750,000	$4,850,000
Capital Spending	$9,574,815	$10,000,000	$12,000,000	$12,000,000	$13,500,000	$12,000,000
Depreciation	$8,745,329	$8,500,000	$8,600,000	$8,750,000	$8,500,000	$8,250,000
Long-Term Debt	$10,416,667	$10,416,667	$10,416,667	$10,416,667	$10,416,667	$10,416,667
Randall-Hecho, Incorporated: Rates	Rates
Interest Rate on Debt	0.060
Corporate Tax Rate	0.200
Sustainable Growth Rate	0.010
Beta	1.250
Market Data
Market Risk Premium	0.075
Risk-Free Rate	0.025
Required:
(Use cells A5 to G25 from the given information to complete this question.)
Randall-Hecho, Incorporated: Cash Flow Calculations	1	2	3	4	5	Terminal Value
Changes in Working Capital
Changes in Long-Term Debt
Free Cash Flow to the Equity
Randall-Hecho, Incorporated: Firm and Equity Value
Equity Cost of Capital
Present Value of Free Cash Flow to the Equity
Price Per Share