1. Selected data for the Derby Corporation are shown in the template. Using this information answer the

following questions:

a. Calculate the estimated horizon value (i.e., the value of operations at the end of the forecast

period immediately after the Year-4 free cash flow).

b. Calculate the present value of the horizon value, the present value of the free cash flows, and

the estimated Year-0 value of operations.

c. Calculate the estimated Year-0 price per share of common equity.