Eberhart Manufacturing has projected sales of $148 million next year. Costs are expected to be $82.5 million and net investment is expected to be $16.5 million. Each of these values is expected to grow at 15 percent the following year, with the growth rate declining by 2 percent per year until the growth rate reaches 7 percent, where it is expected to remain indefinitely. There are 7 million shares of stock outstanding and investors require a return of 14 percent return on the company’s stock. The corporate tax rate is 38 percent. (Do not round intermediate calculations and round your answer to 2 decimal places. (e.g., 32.16)

A. What is your estimate of the current stock price?

B. Suppose instead that you estimate the terminal value of the company using a PE multiple. The industry PE multiple is 12. What is your new estimate of the company’s stock price?