3. An analyst produces the following set of forecasts for company C:

	Year t+1	Year t+2	Year t+3
Profit or loss	100	120	60
Ending book value of business assets	1,030	1,060	1,000
Ending book value of debt	720	740	800

At the end of year t, company Cs book values of business assets and debt are 1,000 and 700, respectively. The analyst expects that after year t+3 profit or loss will be 0 and the book values of business assets and debt will remain constant (i.e., at their year t+3 levels). Company Cs cost of equity is 10 percent. Under these assumptions, the analysts estimate of company Cs equity value at the end of year t is:

Right answer is 307.96

How?

Please provide each and every answer correctly. Solve all three questions with the exact answer.

Note: Please provide an accurate answer as soon as possible.