10. (Valuation) 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. ($ Millions) Firm FCF EBITDA Cash Other Non-Operating Assets (excluding cash) Total Debt Interest Expenses Year 0 338 747 150 70 400 24 Year 1 359 672 120 Year 2 168 400 100 40 770 46 Year 3 108 250 100 45 750 45 800 48 Additional Assumptions 10-year Treasury rate Cost of debt Total number of shares outstanding at the end of Year 0 (in millions) Tax rate Historical equity beta Historical D/V Market Risk Premi Growth Rate of FCF After Year 3 Growth Rate of Interest Expenses After Year3 4.0% 60% 42 40% 0.75 0.20 5.5% 3.0% 0.0% um You classified cash as a non-operating asset and also decided to use the following formula for the unlevered beta: Assume : _