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7 The following is a four-year forecast for Torino Marine. 2022 Free cash flow ( millions) -45 20 points 2024 2025 66 105 Book

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7 The following is a four-year forecast for Torino Marine. 2022 Free cash flow ( millions) -45 20 points 2024 2025 66 105 Book a. Estimate the fair market value of Torino Marine at the end of 2021, Assume that after 2025, earnings before interest and tax will remain constant at $200 million, depreciation will equal capital expenditures in each year, and working capital will not change. Torino Marine's weighted-average cost of capital is 9 percent and its tax rate is 20 percent. Note: Do not round Intermediate calculations. Enter your answer in millions rounded to 1 decimal place. b. Estimate the fair market value per share of Torino Marine's equity at the end of 2021 if the company has 30 million shares outstanding and the market value of its interest-bearing liabilities on the valuation date equals $200 million. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. a. Fair market value b. Fair market value per share milion

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