Valuing a Company A guest on the popular show Great White Tank is attempting to raise money for her new company, Feline Fancy, which makes cat toys. The potential investor wants to value the privately held company. Because of this, he uses the pure play approach to determine that the appropriate WACC for the company is 8%. The relevant tax rate is 35%. Feline Fancy currently has $40 million in debt and 3.5 million shares outstanding. Sales this year are expected to be $30 million, and that amount is expected to grow at 15% per year for the following four years. After that, sales are expected to grow at 2% indefinitely. EBIT this year will be $10 million. EBIT, depreciation