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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 $25 million in 2022 and $31 million in 2023 Beyond 2023, free cash flow is expected to grow at a constant rate of 2% per year forever. ile Walkerville's weighted average cost of capital (WACC) is 11% and it has 9 million shares outstanding. . Question A: (5 points) What is the current enterprise value of Walkerville Woodworking given the above assumptions? OA. $366.97 million OB $302.08 million O C. $336,33 million OD $309.42 million OE $332 83 million Question B (5 points) What should be the price of one share of Walkerville stock? A. $36.59 B. $33.18 OC. $41.16 OD. $37.37 O E $34.38

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