2. The company you want to acquire has the following cash flows for the next five years. Assume that the cost of equity is 13.5% and the firm can borrow long term at 10% (Tax rate for the firm is 50%). The current book value of equity is $1100 and the book value of debt outstanding, which sells at par value, is $900 (book value of debt = market value of debt). The company has 50 shares. (20 pts) Year FCF to Firm 1 $95 2 $105 3 $113 4 $121 5 $128 Terminal Value $2368 a. Find company's WACC using book value of weights. (8 pts) b. Calculate the firm value using corporate valuation model. (6 pts) c. Calculate the market value of equity and the expected price per share. (6 pts)