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(This question has two parts.) It is 2022. 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 2022. 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 \$24 million in 2023 and \$32 million in 2024. - Beyond 2024 , 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? A. $377.18 million B. $310.20 million C. \$317.77 million D. $341.94 million E. $345.44 million Question B: (5 points) What should be the price of one share of Walkerville stock? A. $48.35

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