You have been asked to value Chispa Electric, an private firm providing electrical repair services. The company had earnings before interest and taxes of $$9$million in the most recent year on revenues of $$25$ million. The founder has never collected a salary, which would have amounted to $$500,000$ if based on comparable companies. The tax rate is $26\%$ for all firms, and working capital is $10\%$ of revenues.

The capital expenditures in the most recent year amounted to $$4\mathrm{.}5$ million, while depreciation was only $$1$ million.

Earnings, revenues, and net capital expenditures are expected to grow $20\%$ a year for five years, and $4\mathrm{.}5\%$ after that forever.

The comparable firms have an average beta of $1\mathrm{.}4$ and an average D$/$E ratio of $13\mathrm{.}65\%.$ The average correlation with the market is $0\mathrm{.}50.$ Chispa Electric is expected to have $$4\mathrm{.}83$ million in debt and face a cost of debt of $6\mathrm{.}75\%.$ The risk$-$free rate is $6\%,$ and the market risk premium is $5\mathrm{.}5\%.$

What is the value of Chispa Electric $($as a firm$)?($hint: this is a private firm$)$

$($you will be answer more questions below$)$

Group of answer choices

$32\mathrm{.}45$

$37\mathrm{.}18$ mill

$40\mathrm{.}1$ mill

$35\mathrm{.}08$ mill