XYZ Corporation is expected to have EBIT of $18.5 million, interest expense of $50,000 this year. Debt increased by $150,000 this year and will increase by 4% thereafter. XYZ Corporation is in the 35% tax bracket, will have $2M in depreciation, $3.5M in capital expenditures, and have a $300,000 increase in net working capital this year. The firm has 2,500,000 shares. Total debt is $1million (inclusive of the additional debt for this year), risk free rate is 1%, beta is 0.70, market return is 8%. Capital structure is 40% debt, 60% equity, growth rate is 3%. Prepare a valuation model for 5 year and terminal value. Determine XYZ’s FCFF per share and FCFE per share?