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10. (Valuation via Discounted Cash-Flows: WACC and APV approaches) AN EXTREMELY IMPORTANT QUESTION, MAKE SURE YOU UNDERSTAND EVERY STEPI!) You are part of a team

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10. (Valuation via Discounted Cash-Flows: WACC and APV approaches) AN EXTREMELY IMPORTANT QUESTION, MAKE SURE YOU UNDERSTAND EVERY STEPI!) You are part of a team of analysts working on the valuation of Solo Inc. You have just gathered the following information on the company Note: We are at the end of Year 0 Projections Solo Inc. (S Millions) Year Yea1 Year 2 Yeas 3 168 108 672 400 25 100 100 40 45 338 747 150 359 Fam FC EBITDA Cath Other Non-Opersting Assets (escivndung cash) Total Debt Intesest Expeas 120 400 24 800 70 70 46 4S Additional Assuumptions 10-year Treasury rate Cost of debt Total numbet of shares outstanding at the end of Yeas 0 (in milloas) Tax rate 60% 42 Histocical equity beta Histouical D/V Mazket Risk Piemiom Grouth Rate of FCF After Year 3 Grouth Rate of Intezest Expenses After Year 3 0.75 0.20 5.5% 30% 0.05 asset and also decided to se the following focmala fot the nnleresed also Yon classitied eash as a non-operating 1+a-) Assume: Po

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