22. You have been asked to value Fulmer's Football Helmets, Inc. Below is some information ($ millions except per-share data). Use the APV model to find the intrinsic value of the firm's equity in Smillions. Historical Projected year 1 Projected year 2 Short-term investments 70 75 78 Total Assets 1,200 1,300 1,400 All debt 350 380 400 Total liabilities 500 550 575 Shareholder's equity 800 850 925 Interest expense 18 19 20 Free cash flow 25 35 43 Interest rate on debt = 5% rL (levered cost of equity) = 11% WACC = 8% ru (unlevered cost of equity) = 9% Tax rate = 25% Long-term growth rate = 3% 22. You have been asked to value Fulmer's Football Helmets, Inc. Below is some information ($ millions except per-share data). Use the APV model to find the intrinsic value of the firm's equity in Smillions. Historical Projected year 1 Projected year 2 Short-term investments 70 75 78 Total Assets 1,200 1,300 1,400 All debt 350 380 400 Total liabilities 500 550 575 Shareholder's equity 800 850 925 Interest expense 18 19 20 Free cash flow 25 35 43 Interest rate on debt = 5% rL (levered cost of equity) = 11% WACC = 8% ru (unlevered cost of equity) = 9% Tax rate = 25% Long-term growth rate = 3%