Question: How do you calculate this problem? The following table presents forecasted financial and other information for Havasham Industries: 201520162017Projected EBIT$ 317$ 339$ 363Earnings after tax197210225Free

How do you calculate this problem? The following table presents forecasted financial and other information for Havasham Industries:

201520162017Projected EBIT$ 317$ 339$ 363Earnings after tax197210225Free cash flow135144155Havasham's WACC8.2%Expected growth rate in FCFs after 20174.0%Warranted MV firm/FCF in 201719.4Warranted P/E in 201718.7

What is an appropriate estimate of Havasham's terminal value as of the end of 2017 using the perpetual-growth equation as your estimate?

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