3. The following questions are based upon some information from a Vertical Research Partners research report for Cordova, which trades on the stock market with the stock symbol of CTVA. Please note that I have provided the Three-Stage DCF Model from the report for your viewing pleasure on the following page. The page with the DCF analysis contains a lot of information pertaining to the cash flow model used by the research team at Vertical Research Partners to estimate the per share price of Corteva. I have a few questions that are directly or indirectly related to information contained in the DCF analysis included in the exam package. By the way, please remember that the page provided has a printed estimate of 8.0% for the WACC (Weighted Average Cost of Capital) of Corteva, but a more precise estimate of Corteva's WACC that we used in class is 8.028821%. You should use the WACC value of 8.028821% for any calculation work you are asked to do related to this question.

a. You will note on the Free Cash Flow to the Firm (FCFF) line of the DCF analysis that at the far right there is a question mark where there should be a number for Terminal Value. Please explain/show/set-up how to calculate and then actually execute and show the calculation process to determine what would be the proper Terminal Value.

b. You will also note two question marks immediately above the line Total Enterprise Value that may be found in lower left area of the DCF page. b1. Now please explain/show/set-up how to calculate and then actually do the calculation to determine the NPV of the Terminal Value.

b2. Now please explain/show/set-up how to determine the NPV of FCFF in Years 1-10. NOTE: YOU DO NOT NEED TO SPEND TIME ACTUALLY DOING THIS SPECIFIC CALCULATION; YOU JUST NEED TO EXPLAIN OR SHOW WHAT YOUR CALCULATION PROCESS WOULD BE