1.You are given the following estimates of a firm's FCFF (all figures are in $Millions).You estimate that the firm's trailing TEV/EBITDA multiple in year 5 is 8x.The firm has a Debt Ratio (based on market values) of 60% and 10 Million shares outstanding.Estimate the intrinsic value of a share of the firm's equity assuming a 9% WACC (and assume that the firm holds no excess cash)

Year

1

2

3

4

5

EBIT

100

106

116

124

130

Depreciation Expense

30

40

44

50

60

Net Income

70

84

90

104

108

FCFF

120

128

136

144

150

FCFE

110

116

128

136

128