12. Timo's Turtles Inc. (TTI) is expected to increase their Free Cash Flows (which are scaled by millions) by 20% in year one and by 15% in year two. After that, FCFS will increase at a constant rate of 5% per year indefinitely. The previous year FCF was $1; the WACC is 20%, what is the current total firm value of TTI? (Hint: final step/answer will be from an NPV calculation) A. $6.90 (B $8.67 C $9.66 D$10.10 E. $13.04 WACC = 20 1(120) 1.2 !! 1.2 (1.15) 1 38 3 138 (1.05):1.449 1.449/.2-.05 =9.66

20 12. Timo's Turtles Inc. (TTI) is expected to increase their Free Cash Flows (which are scaled by millions) by 20% in year one and by 15% in year two. After that, FCFs will increase at a constant rate of 5% per year indefinitely. The previous year FCF was $1; the WACC is 20%, what is the current total firm value of TTI? (Hint: final step/answer will be from an NPV calculation) A. $6.90 WACC B $8.67 1:38 C. $9.66 2 D$10.10 3 1.36 (1.05): 1,449 E. $13.04 1.4491.2-.05 = 9.66 1.2 (120) 1.2 (115)