5 ? year ? EV = 200 IN = 30 PMT = 32.5 FV = 1000 I = 2.75% (f ) ( 2 points ) What is the conversion value of the bond in year 5 ? 10 . 065 - 0. 03 = $ 5, 714. 2 9 Share net debt is forecasted at $2 , 300 million in 5 years at which time there will be 122 . 67 million shares outstanding . WACC is 6 . 5% and that the free cash flow grows at a constant rate of 3% annual rate after year 6 . The company's Suppose you have accurately projected Lucky's free cash flow in year 6 to be $ 200 million . Assume the company's @ ) 15 points ) What is Lucky's enterprise value projection is year 5 ? What is the projected share price in year 5 ) 15 Points ) Assuming interest rates have fallen by 2% since the bond was issued , at what price will the bond trade at in year 5 ? Should you consider converting the bond or risk letting the bond be called within a Price = . cool 1:27.83 PV = - 1101. 25 ; bond should be converted |1 22 . 67 \\ 5714 . 29 - 230 0 \\= $ 35 . 93 \\= $27 . 83