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(14 pts) . 3. Find the equity value for a company with the following information Free cash flow in 2022 is expected to be 519,000

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(14 pts) . 3. Find the equity value for a company with the following information Free cash flow in 2022 is expected to be 519,000 Free cash flow in 2023 is expected to be $19,500 Free cash flow in 2024 is expected to be $20,800 You are not given growth rates beyond 2024, so you plug in 1.8% which is What GOP tends to grow at The company's WACC 7.5% and they have $125,000 of debt Other companies are selling at P/E multiples of 18 and EV/EB/TDA multiples of 11 a) What is the equity value using the free cash flow valuation method? b) What are two equity valuations using other methods? (4 pts) Which is the best method to use for valuation this case? Why? 12 pts) (8 pts) 4. The average score on the first Finance exam is 82%. The standard deviation is 7%. 20 students took the exam. The average score on the second exam was 81%, with a standard deviation of 9X, but only 16 students took this exam. pts) 2. For the first exam: What percentage of the students would you expect to have scored above 96%? b. For the second exam: What percentage of the students would you expect to have scored below 72? What is the weighted average score across both exams? 3 (14 pts) . 3. Find the equity value for a company with the following information Free cash flow in 2022 is expected to be 519,000 Free cash flow in 2023 is expected to be $19,500 Free cash flow in 2024 is expected to be $20,800 You are not given growth rates beyond 2024, so you plug in 1.8% which is What GOP tends to grow at The company's WACC 7.5% and they have $125,000 of debt Other companies are selling at P/E multiples of 18 and EV/EB/TDA multiples of 11 a) What is the equity value using the free cash flow valuation method? b) What are two equity valuations using other methods? (4 pts) Which is the best method to use for valuation this case? Why? 12 pts) (8 pts) 4. The average score on the first Finance exam is 82%. The standard deviation is 7%. 20 students took the exam. The average score on the second exam was 81%, with a standard deviation of 9X, but only 16 students took this exam. pts) 2. For the first exam: What percentage of the students would you expect to have scored above 96%? b. For the second exam: What percentage of the students would you expect to have scored below 72? What is the weighted average score across both exams? 3

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