1. ABC Corporation's Debt / Equity ratio is 40%. If the cost of debt is 13.5%, what is the company's Weighted Average Cost of Capital (WACC)?

2. The free cash flow to firm (FCFF) is expected to be 17,500 TL and 17,400 TL respectively by 2018 and 2019. As this cash flow (FCFF) is expected to grow 5% from 2019 to infinity, what will be the total value of the firm as of 31.12.2017?

3.What will be the total value of the company's debt as of 31.12.2017?

ABC Corporation's financial statements for 2017, 2018 and 2019 are given below. ABC Corporation BALANCE SHEET (TL) 1. CURRENT ASSETS Cash Marketable Securities Accounts Receivable Inventories II. FIXED ASSETS Machines (net) TOTAL ASS 31.12.2017 31.12.2018 31.12.2019 79714 83700 87900 7714 8100 8400 18857 19800 20700 22857 24000 25200 30286 31800 33600 75714 79500 84300 75714 79500 84300 155429 63200 172200 63000 66600 15600 16800 8400 8400 LIABILITIES AND OWNERS' EQUITY 1. SHORT TERM LIABILITIES Accounts Payable Accruals Bank Loan 11. LONG TERM LIABILITIES Bank Loan HI. OWNERS' EQUITY Common Stock Reatined Earnings TOTAL LIABILITIES AND OWNERS' EQUITY 60000 14857 8000 37143 46857 46857 39000 49200 49200 41400 51900 51900 53700 30000 48571 51000 28571 30000 20000 21000 23700 155429 163200 172200 2017 142857 -62857 2018 150000 -66000 84000 -55500 2019 159000 -70200 88800 80000 -52857 ABC Corporation INCOME STATEMENT (TL) Net Sales Cost of Goods Sold (-) Gross Profit Operating Expenses Sales and Adm. Expense Depreciation Expense Earnings Before Interest and Tax Interest Expense Earnings Before Tax Tax (%20) NET PROFIT AFTER TAX -58800 -49800 -45714 -48000 -7143 -7500 -9000 27143 28500 -6000 -6300 30000 -6900 23100 21143 22200 -4229 -4440 -4620 18480 16914 17760 ABC Corporation's financial statements for 2017, 2018 and 2019 are given below. ABC Corporation BALANCE SHEET (TL) 1. CURRENT ASSETS Cash Marketable Securities Accounts Receivable Inventories II. FIXED ASSETS Machines (net) TOTAL ASS 31.12.2017 31.12.2018 31.12.2019 79714 83700 87900 7714 8100 8400 18857 19800 20700 22857 24000 25200 30286 31800 33600 75714 79500 84300 75714 79500 84300 155429 63200 172200 63000 66600 15600 16800 8400 8400 LIABILITIES AND OWNERS' EQUITY 1. SHORT TERM LIABILITIES Accounts Payable Accruals Bank Loan 11. LONG TERM LIABILITIES Bank Loan HI. OWNERS' EQUITY Common Stock Reatined Earnings TOTAL LIABILITIES AND OWNERS' EQUITY 60000 14857 8000 37143 46857 46857 39000 49200 49200 41400 51900 51900 53700 30000 48571 51000 28571 30000 20000 21000 23700 155429 163200 172200 2017 142857 -62857 2018 150000 -66000 84000 -55500 2019 159000 -70200 88800 80000 -52857 ABC Corporation INCOME STATEMENT (TL) Net Sales Cost of Goods Sold (-) Gross Profit Operating Expenses Sales and Adm. Expense Depreciation Expense Earnings Before Interest and Tax Interest Expense Earnings Before Tax Tax (%20) NET PROFIT AFTER TAX -58800 -49800 -45714 -48000 -7143 -7500 -9000 27143 28500 -6000 -6300 30000 -6900 23100 21143 22200 -4229 -4440 -4620 18480 16914 17760