25. For 2023, Volant Inc. is forecast to have Free Cash Flow to the Firm of $1.7 million and Free Cash Flow to Common Equity of $1.3 million. You forecast Free Cash Flow to the Firm to grow at a constant rate of 3.50% while Free Cash Flow to Common Equity grows at 4.00%. Volants tax rate is forecast to be 25%. You also collect the data shown below.

Book Value Market Value

Debt $14.5 million $15.0 million YTM: 4.24%

Common Equity $21.0 million $45.0 million Rate of Return: 7.00%

Calculate Volants Weighted Average Cost of Capital and round to 1 basis point.

WACC:

26. Using the information in question 25, calculate the intrinsic value of Volants common equity using Free Cash Flow to the Firm. Answer in millions and round to one decimal.

IV:

27. Using the information in question 25, calculate the intrinsic value of Volants common equity using Free Cash Flow to Common Equity. Round to 2 decimals.

IV: