The SoftTec Products Company is a successful, small, rapidly, growing, closely held corporation. The equity owners are considering selling the firm to an outside buyer and want to estimate the value of the firm. Following is last year's income statement 2013and projected income statements for the net four years (2014-2017). Sales are expected to grow at an annual 7 percent rate beginning in 2018 and continuing thereafter.

2013 2014 2015 2016 2017

Net sales 150 200 250 300 350

COGS -75 -100 -125 -150 -175

Gross Profit 75 100 125 150 175

SG&A expenses -30 -40 -50 -60 -70

Depreciation -7.5 -10 -12.5 -15 -17.5

Earning before interest and taxes 37.5 50 62.5 75 87.5

Interest -3.5 -3.5 -3.5 -3.5 -3.5

Earning before taxes 34 46.5 59 71.5 84

Taxes(40% rate) -13.6 -18.6 -23.6 728.6 -33.6

Net Income 20.4 27.9 35.4 42.9 50.4

Selecting balance sheet accounts at the end of 2013 were as follows. Net fixed assets were $50,000. The sum of the required cash, accounts receivable, and inventories accounts was $50,000. Accounts payable and accruals totaled $25,000. Each of these balance sheet accounts was expected to grow with sales over time. No charges in interest-bearing debt were projected, and there were no plans to issue additional shares of common stock. There are currently 10,000 shares of common stock outstanding.

Data have been gathered for a comparable publicly traded firm in the same industry that Soft-Tec operates in. The cost of common equity for this other firm. Wakefield Products, was estimated to be 25b percent. SoftTec has survived for a period of years. Management is not currently contemplating a major financial structure change and believes a single discount rate is approprite for discounting all cash flows.

A. Project SoftTec's income statement for 2018

B. Determine the annual increases in required net working capital and capital expenditures (CAPEX) for SpftTec for the years 2014 to 2018.

C. Project annual operating free cash flows for the years 2014 to 2018.

D. Estimate SoftTec's terminal value cash flow at the end of 2017.

E. Estimate SoftTec's equity value in dollars and per share at the end of 2013.

F. SoftTec's management was wondering what the firm's equity value (doolar amount and on a per-share basis) would be if the cost of equity capital were only 20 percent. Recalculate the firm's value using this lower discount rate .

G. Now assume that $35,000 in long-term debt (and therefor interest expense at 10 percent) is expected to grow with sales. Recalculate the equity using the original 25 percent discount rate.

Please give me detailed steps. Thx