Quantum Computing has the following income statement for the past three years:

Q2. (20 marks) Quantum Computing has the following income statement for the past three years: Quantum Income Statement $ million 2020 2019 2018 Revenues 3500 2750 2240 Labour 1200 1100 1000 Depreciation 350 275 225 Interest expense 200 200 200 General expenses 1075 950 800 2825 2525 2225 Pre-tax net income 675 225 15 Taxes 168.75 56.25 3.75 Net Income 506.25 168.75 11.25 Assume revenues will grow by 8% every year for the next 10 years and expenses will grow by 7% during the same time period. The 25 - year Government of Canada bond yields 1.75% Quantum has issued $1,000 par value bonds that pay 5%, bond equivalent yield. Current market yields are 4%. The bonds have 22 years left to maturity. Interest is paid semiannually. The beta for Quantum is 2.3 and market yields for equities are 7%. Assume the mix of bonds to equity is 50% / 50% for Quantum (equal). Quantum pays tax at 25%. After 10 years the free cash flow for Quantum will grow at 2% per year in perpetuity. Calculate the value of Quantum. I recommend that you use a spreadsheet for this