4. Problem 17-04 (Calculation of FCFE) etlook Calculation of FCFE A company has the following information: Earnings before interest and taxes Interest expense Tax rate Net change in debt Investment in total capital $ 120.00 $ 8.00 40% $14.00 $ 13.00 ry What is its free cash flow to equity? Do not round intermediate calculations. Round your answer to the nearest cent. 5 FCFE Valuation A company's most recent free cash flow to equity was $140 and is expected to grow at 5% thereafter. The company's cost of equity is 119. Its WACC is 7.78%. What is its current Intrinsic value? Round your answer to the nearest dollar Carlson Co. has a value of $50 million. Baker is otherwise identical to Carlson Co., but has $20 million in debt. Suppose that both firms are growing a a rate of 5%, the corporate tax rate is 35%, the cost of debt is 6%, and Cartson's cost of equity is 9% (assume rzu is the appropriate discount rate fo the tax shield). Use the Modigliani and Miller theory extension for growth to complete the following table. (Note: Round all final answers to two decimal places.) Carison Co. Baker Corp Value of the firm Value of the stock Cost of equity $50 million $50 million 9%