Using the Data for Hosaka Corp (HC), find the intrinsic value of a share of HC.

DATA FOR HOSAKA CORP

Projected Sales for 2018: $1,000,000

Gross Profit Margin: 80%

Operating expenses (excluding Depreciation): 15% of sales

Depreciation for 2018: $250,000

Interest Expense $120,000/year

Tax: 25%

Capital Expenditures for 2018: $300,000

Investment in Working Capital for 2018: $80,000

Sales are expected to grow at 20% per year for the next 4 years (after 2018)

Capital Expenditures, Depreciation, and Investment in Working Capital are expected to grow at 15% per yearfor the next 4 years

Hosaka has an 8% cost of capital, $2 Million in Debt, and 1 Million shares outstanding

Hosaka currently has a Enterprise Value/EBIT multiple of 10, and that is expected to remain stable