The following is a set of forecasts for Wolf Company:

Year t+1

Year t+2

Year t+3

Profit or loss

$150

$180

$90

Ending book value of business assets

$1,545

$1,590

$1,500

Ending book value of debt

$1080

$1,110

$1,200

At the end of year t, Wolf company book values of business assets and debt are $1,500 and $1,050, respectively. The analyst expects that after year t+3 profit or loss will be $0 and the book values of business assets and debt will remain constant (i.e., at their year t+3 levels). Wolf company cost of equity is 5%. With these assumptions, provide a calculation to estimate the Wolf company's equity value at the end of year t. (15 marks)

Required: You can directly write your calculation on the space provided or upload your answer in excel, word or pdf format. Calculation of how you get the numbers needs to be clearly shown (written).