6.50 per share 4,500 131 $ 4.75 per share 7,600 0.56 per share $ Year 2020 (timea EBT 1,051 Mkt Price for Common share Tax rate 32% # of common shares outstanding Decrease in Current Assets 125 Increase in Current Liabilities Beta of the stock $ 36 Beginning PPE 9,800 Mkt Price for Preferred share Depreciation 11% per year # of preferred shares outstanding Issuance of new debt 1,550 Div per pref share per year Decrease in Preferred Shares $ 145 Increase in PPE $ 180 Mkt Price for Bond Cash in Balance Sheet $ 8.900 Maturity leftover Total Debt in Balance Sheet $ 18,000 Coupon rate (paid semi-annual) Total Preferred Shares in B/S $ 12,000 Face Value *Dep is based on beginning PPE # of bonds outstanding *int exp is based on coupon rate of the bond * Cost of debt is the YTM of the bond Risk Free Rate S&P 500 Return *EV - MV of Bonds + MV of pref shMV of common sh-cash and cash equivalents $ 1,011 per bond 7 years 9.25% 1,000 18 S 2.10% 10.50% a) b) c) d) e) 5 marts 3 marks S marks 2 marts Find FCFF for 2020? Find FCFE for 2020? Calculate Cost of Common Equity, Cost of Preferred Equity and After-tax cost of debt? Calculate WACC? Consider the following ECE Rrowth: Next 3 years: 5.50% From year 4 onward: 2.00% 6 marts 4 marks 25 marks Find the intrinsic or fair value of the whole firm (Enterprise Value). Find the intrinsic or fair value per common share using the FCFF approach, f) Total