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7. LEEDNEI offers the following information: Year 1 Year 2 Year 3 Year 4 EBIT 10 12 13 15 Amortization 2,9 2,7 2,7 2,9 CAPEX

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7. LEEDNEI offers the following information: Year 1 Year 2 Year 3 Year 4 EBIT 10 12 13 15 Amortization 2,9 2,7 2,7 2,9 CAPEX 1,5 2,5 2,5 3 Increases in net working capital 0,8 1,5 1,5 0,9 We also know that the corporate tax rate is 40%, the book value of long-term debt is 7, the coupon rate of this debt is 9%, the required return on debt is 8.7%, the growth rate of FCF in the long term is 4%, and the WACC is constant equal to 15%. Determine the Free Cash Flows, the value of the firm, the market value of debt and the market value of equity

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