1) a Petty Corporatuon forecaste a negavtive free cash flow for the coming yese with FCF1= 10 million, but it expects positive nunbers thereafter, with FCF2 = $22 million. Affer Year 2 , FCF is expected to grow at a constant rate 4% forever. if the weighted avergae cosr of captial is 14% what is the firm's total corporate value in millions?

b) Midwest Industries is undergoing a restructung snd its gree cash flows are expected to vary considerably during the next few years. However, FCF is expected to be $62 million in Year 5 and the FCF growth rate is expected to be a constant 6.5% beyond that point. Thier weighted average cost of captial is 12%. what is the horizon (or continuing) value in million at t=5?