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(This question has two parts.) It is 2021. 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 2021. 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 $28 million in 2022 and $33 million in 2023. . Beyond 2023, 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 7 million shares outstanding. Question A: (5 points) What is the current enterprise value of Walkerville Woodworking given the above assumptions? OA $322.82 million OB. $391.89 million OC. $355.56 million OD. $359.08 million O E. $330.63 million Question B: (5 points) What should be the price of one share of Walkerville stock? OA. $56.48 OB. $47.23 OC. $50.29 OD. $45.62 E. $51.29

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