Valuation of the following small Company:

EBIT (in period 1): 100 k USD

Tax Rate: 25%

Cost of Equity: 15%

Cost of Debt: 4%

leverage ratio (D/E): 0.5

Payout to Investors: 50% of earnings, rest will be retained for investments. Growth in EBIT only comes from investments through retained earnings.

ROCE (Return on Capital Employed): 11%

1) What EBIT can be expected in period 4?

2) What is the current Enterprise Value?

3) How does the current Enterprise Value change when payout would increase to 60% or 70% from period 4 onwards (forever)?