I'm having trouble with number 2 a. What equation should I use to get he value of equity when I don't have the number of shares outstanding?

FIN\t302\tIntermediate\tFinancial\tManagement Problem\tSet\t4 1. Fryer's Hardware is a hardware store, selling both large equipment (lawnmowers, snow blowers etc) and conventional hardware. The store generated $500,000 in after tax operating income from revenue of $ 5 million last year; large equipment accounted for 40% of the revenues and 60% of after-tax operating income. Fry's is considering opening a equipment service center on site and has the following information - The initial investment in the service center is expected to be $1 million, depreciable straight line over five years to a salvage value of zero. The service center is expected to generate $400,000 in revenues each year for the next 5 years and the costs of personnel and materials is expected to be $150,000 each year. The tax rate is 40%, the cost of capital is 10% for equipment servicing. (a) Estimate the NPV of the equipment service center 2. You are trying to value SafeMoney Inc.,using the dividend discount model. SafeMoney Inc. is expected to pay $60 million in dividends on net income of $100 million next year. It is in stable growth, expecting to grow 4% a year in perpetuity. The cost of equity for the firm is 8%. a) Value the equity in SafeMoney Inc. b) If the expected growth rate is correct, estimate the return on equity that you are assuming for SafeMoney Inc. in perpetuity. c) Assume now that you are told that SafeMoney can increase its return on equity to 12% in perpetuity,by lending to riskier clients. If the expected growth rate remains unchanged, what would be the cost of equity have to be for equity value to remain unchanged (from your answer in (a)