Please review the attachment. Please explain steps.
1. What is the number in “???” for LA Kash cash flow table?
2. What are the advantages and disadvantages of going public?
3. What is the appropriate growth rate for calculating the cash flows, terminal cash flow, and cost of equity?
4. What is the appropriate discount rate to calculate the price per share? Explain?
5. Estimate the cost of equity using both methods.
6. How your estimate of the cost of equity capital for LA KASH should be influenced by the fact that LA KASH is not a publicly held company and that the market, therefore, has little information on LA KASH Company?
7. What are the estimates of cash flows per share and terminal cash flow per share?
8. Estimate the most likely market value for LA KASH’s stock.