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2) The following information relates to iX Remote Inc: o Capital Structure: Preferred Stock Bonds Common Stock Amount $100m $500m $600m Required return before tax

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2) The following information relates to iX Remote Inc: o Capital Structure: Preferred Stock Bonds Common Stock Amount $100m $500m $600m Required return before tax 8% 10% 15% The bonds are trading at par whilst the Preferred Stock recently paid a dividend of $10m. Net profit after tax and payments of Pref dividends Investment in Working Capital Investment in Fixed Capital Net Borrowings received $120m $25m $50m $20m Depreciation Tax rate Long term growth rate of FCFF $30m $30% 5% A. Calculate the WACC B. Calculate the FCFF C. Calculate the value of iX Remote Inc. using a single-stage FCFF model D. Calculate the value of iX Remote Inc's equity using the single-stage FCFF model

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