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(This question has two parts.) It is 2020. You are investigating the possibility of making an equity investment in Walkerville Woodworking Inc., a firm that

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(This question has two parts.) It is 2020. You are investigating the possibility of making an equity investment in Walkerville Woodworking Inc., a firm that specializes in producing antique-style furniture with a modern twist. Your research has revealed the following information: Walkerville has $8 million in excess cash and $4.5 million in debt. The company is expected to have free cash flow of $26 million in 2021 and $32 million in 2022. Beyond 2022, free cash flow is expected to grow at a constant rate of 2% per year forever. . Walkerville's weighted average cost of capital (WACC) is 11% and it has 8 million shares outstanding. Question A: (5 points) What is the current enterprise value of Walkerville Woodworking given the above assumptions? O A. $314.58 million B. $343.75 million C. $337.97 million OD. $412.06 million O E. $323.72 million Question B: (5 points) What should be the price of one share of Walkerville stock? O A. $43.41 O B. $42.53 O C. $41.81 OD. $51.07 O E. $39.76

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