1 question (70%) The Bergeson Corporation sold its shares to the general public in 2019. The firm's estimated free cash flow for the next four year is as follows: Given: Sales growth for years 1-3 Operating profit margin Net working capital to sales ratio Property, plant, and equipment to sales ratio Beginning sales Cash tax rate Total liabilities 10. 16 13 18 S 27,272.73 30. S 4,000. Cost of capital Number of shares 2,000 Bergeson is estimating its free cash flow that would form perpetuity beginning in year 4 Furthermore, the firm's investment banker conducted a study of the firm's cost of capital and estimated the weighted average cost of capital to be approximately 12 percent Required- a. What is the market value of Bergeson using free cash flow valuation model? b. Given that Bergeson's invested capital in year 0 is $9 818,18, what is the market value added (MVA) for Bergeson? c. What is the Shareholder's value added (SVA) for Bergeson? d f Bergeson has 2000 shares of common stock outstanding and abilities (debi) valued at $ 4000, what is the value per share of its stock? Years 2 4 and thereafter Change in current assets Current assets S 4,909.09 tal expenditures Property, plant and equipment Total Capital-Total Assets-Non-interest$9,818.18 liabilities 4,909.09 FREE CASH FLOWS: Years 4 and thereafter Sales Operating income (Earnings Before Interest and Taxes) Less cash tax payments Net operating profits after taxes (NOPAT Less investments Investment in Net Working Capital Capital expenditures (CAPEX) Total investments PV of FCH Present value of free cash flows: Planning horizon cash flows Terminal value in year 4 a) Firm value Invested capital (year 0) b) Market Value Added c) Shareholder Value Added No. of shares