You are trying to value the equity of Target company. Target has a debt of $2,000 in its capital structure. Here is an excerpt from Target's income statement for the year ended December 31, 2019. Net Sales 4,335.00 Operating expenses 3,935.00 EBIT 400 Interest expense 100 EBT 300 Taxes 100 NI 200 You have identified a similar company, Comp One. Comp One is comparable to Target in terms of accounting methods, growth, and business. You have the following information about Comp One. I/S information for the year ended December 31, 2019 Net Sales 750 Operating expenses EBIT Interest expense EBT Taxes NI Market Value Information (December 31, 2019) Debt 500 Equity 500 Total 1,000 Required: a. Assuming t* is 14%, calculate PEU for Comp One, where PEU = Vu/EBIT and Vu is unlevered equity. Use PEU of Comp One to value the equity of Target. (7 marks) b. Suppose Target has a growth rate of 50% and Comp One has a growth rate of 20%. What is the value of the equity of Target? (3 marks) You are trying to value the equity of Target company. Target has a debt of $2,000 in its capital structure. Here is an excerpt from Target's income statement for the year ended December 31, 2019. Net Sales 4,335.00 Operating expenses 3,935.00 EBIT 400 Interest expense 100 EBT 300 Taxes 100 NI 200 You have identified a similar company, Comp One. Comp One is comparable to Target in terms of accounting methods, growth, and business. You have the following information about Comp One. I/S information for the year ended December 31, 2019 Net Sales 750 Operating expenses EBIT Interest expense EBT Taxes NI Market Value Information (December 31, 2019) Debt 500 Equity 500 Total 1,000 Required: a. Assuming t* is 14%, calculate PEU for Comp One, where PEU = Vu/EBIT and Vu is unlevered equity. Use PEU of Comp One to value the equity of Target. (7 marks) b. Suppose Target has a growth rate of 50% and Comp One has a growth rate of 20%. What is the value of the equity of Target