You work as a financial analyst and are in charge of tracking a certain group of firms. The portfolio manager has asked you to submit an investment recommendation for firm $$XYZ$$ based on your stock price valuation. You have the following information for this year:

EBIT: $$4$ million.

Depreciation: $$300,000.$

Changes in NWC: $$400,000.$

Capital spending: $$600,000.$

You have estimated that over the next $3$ years, EBIT will grow at $20\%$ per year, depreciation will grow at $10\%$ per year, changes in NWC will grow at $25\%$ per year, and capital spending will grow at $50\%$ per year. After year $3,$ the adjusted cash flows from assets are expected to grow indefinitely at $3\%$ per year. XYC$$s WACC is $10\%,$ and the tax rate is $25\%.$ The firm has $$25$ million in debt and $500,000$

shares outstanding.

$1)$ Use the information provided to obtain the price per share of XYZ$$s stock $(20$ points$)$

$2)$ If the market stock price is $$25,$ would you give your portfolio manager a $$buy$$

recommendation? Justify your answer $(10$ points$)$

Show work and explain please.