38. ABC Corporation wanted to buy XYZ Corporation and wants to value it using DCF using the following table below. XYZs WACC is 10%. XYZs long term growth rate is 2% and its cost of equity is 12%. 2027 is the terminal year for ABCs forecast of XYZs FCFF forecast. What is XYZs present value for its FCFF for the first 4 years from 2023 to 2026?

2023	2024	2025	2026	2027
FCFF	FCFF	FCFF	FCFF	FCFF
P 1 billion	P 2 billion	P 3 billion	P 4 billion	P 5 billion

a. P 7.55 billion

b. P 8.95 billion

c. P 9.15 billion

d. P 10.45 billion

e. None of the above

39. ABC Corporation wanted to buy XYZ Corporation and wants to value it using DCF using the following table below. XYZs WACC is 10%. XYZs long term growth rate is 2% and its cost of equity is 12%. 2027 is the terminal year for ABCs forecast of XYZs FCFF forecast. What is XYZs terminal value?

2023	2024	2025	2026	2027
FCFF	FCFF	FCFF	FCFF	FCFF
P 1 billion	P 2 billion	P 3 billion	P 4 billion	P 5 billion

a. P 12.75

b. P 34.89

c. P 48.00

d. P 50.00

e. P 62.00

f. None of the above

40. ABC Corporation wanted to buy XYZ Corporation and wants to value it using DCF using the following table below. XYZs WACC is 10%. XYZs long term growth rate is 2% and its cost of equity is 12%. 2027 is the terminal year for ABCs forecast of XYZs FCFF forecast. What is XYZs value per share if it has 1 billion shares?

2023	2024	2025	2026	2027
FCFF	FCFF	FCFF	FCFF	FCFF
P 1 billion	P 2 billion	P 3 billion	P 4 billion	P 5 billion

a. P 21.89

b. P 37.46

c. P 41.70

d. P 58.52

e. None of the above