GG Company just paid $0.85 as a dividend, expected to grow at 5.0%. The most recent stock price is $82. Moving forward, the company has a debt issue outstanding with 23 years to maturity that is quoted at 105% of face value. The issue makes semiannual payments and has an embedded cost of 6% annually. It considers a debt-equity ratio of 0.60 and a 30% corporate tax rate. In this year, the company has an EBIT of $3.15 million. Depreciation, the increase in the net-working capital, and capital spending were $265,000, $105,000, and $495,000, respectively. Therefore, you expect that over the next five years, EBIT will grow at 15% per year, depreciation and capital spending will grow at 20%, and NWC will grow at 10% per year. It also has $19.5 million in debt and 400,000 shares outstanding. After 5-years, the adjusted cash flow from assets is expected to grow at 3.50% indefinitely.

1. What is the cost of equity (%)?

2. What is the post-tax cost of debt (%)?

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3. What is the WACC (%)?

4. What is the value of the company ($)?

5. What is the price per share ($)?

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