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(16 pts total) Long Q1: Best Buy Co. expects to have FCF of $30 M (t-1), 540M (t=2), and 538M (1-3). After year 3, analysts

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(16 pts total) Long Q1: Best Buy Co. expects to have FCF of $30 M (t-1), 540M (t=2), and 538M (1-3). After year 3, analysts expect their FCF to grow at 5to per year. Their WACC is 1596. What is the terminal value in year 3 (TV_3) of Best Buy? What is the enterprise value of Best Buy (EV_02? (Answer in millions. Ex for 12,002,000 put 12.002) You are unsure of the terminal growth rate estimate. Thus, you do more research and find that companied similar to Best Buy trade at an eV/EBIT of a. The projected EBIT for Best Buy in year 3 is $56 M. Using the exit multiple approach. What is the terminal value in year 3 (TV3) of Best Buy? What is the enterprise value of Best Buy (EV_017 (Answer in millions. Ex for 12,002,000 put 12.002) (if you do not know how to calculate TV_3 for A1 or A3, you can use $100 M and continue to the next calculation)

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