1. Waffles Corporation (WC) generates a constant FCF of $1 million from years 1 through 4. Beginning on year 5, retention policy allows investments, increasing WCs by 4% a year from year 5 onward. We also know that WC has e constant debt to value ratio of 0.5 and; a corporate tax rate of 25%, and an equity cost of capital of 10% and a debt cost of capital of 8%. Estimate the continuation value for the constant growth perpetuity and the Enterprise Value of WC.

   	a.	$17.33 million; $16.42 million
   	b.	$26 million; $21.69 million
   	c.	$26 million; $22.42 million
   	d.	$17.33 million; $17.19 million