- You are following the stock of AWC, the manufacturer of widgets. Widget manufacturing is a stable industry with established technology. You have the following financial data on AWC at the end of 2022(Th - Based on your interviews with the executives of the firm, you have found out the following information: - The research department at the AWC had a breakthrough, and AWC is expected to dominate the market with its improved manufacturing process. It is estimated over the next five years, the firm will enjoy 30% growth in its revenues. - In addition, the company plans to take several cost-cutting measures to improve the EBITDA from its current level of 9% to 12% over the next three years (i.e., every year, there is a 1% improvement). The EBITDA/Sales ratio will stay at 12% afterward. - The management forecasts a significant increase in capital expenditures in 2022 to build a new production facility, which will cost $100 million. - The new facility will be depreciated using the straight-line method over five years. The maintenance costs for general wear and tear of the rest of the facilities are expected to equal depreciation of the rest of the facilities, around $27 million per year over the next five years. - The management also plans to implement a number of improvements to the company's working capital management and expects the working capital requirement to go down by one percent every year from its current level to 16 percent of sales revenues by the end of the five-year period. - The executives expect the company's interest expense to remain constant. - It is expected that the competitors will quickly imitate the new technology such that the growth will drop to 5% after the fiveyear period. Looking at the recent past history of the stock price, you estimated the AWC stock beta to be 1.2 . The current risk-free rate is 3%, and the risk premium is 5%. AWC's debt has AA credit rating. Currently, longterm corporate bonds with AA rating yield 0.8% above the risk-free rate. Assume that the market value of debt is the same as the book value of debt, and assume that the corporate tax rate is 21%. Value AWC, showing explicitly the free cash flow you calculated. Find the price per share of stock. What would be your recommendation on the stock, given the current price