a$.$ Calculating the estimated horizon value $($i$.$e$.,$ the value of operations at the end of the forecast

period immediately after the Year$-4$ free cash flow$)$

Constant long$-$term growth rate

Formulas

Free cash flow

Marketable securities

Notes payable

Long$-$term bonds

Horizon value at Year $4$

million

#N$/$A

#N$/$A

b$.$ Calculating the present value of the horizon value, the present value of the free cash flows,

and the estimated Year$-0$ value of operations

Present value of $HV$

Present value of FCF

Value of operations

million $,$ #N$/$A

c$.$ Calculating the estimated Year$-0$ price per share of common equity

Value of operations

Value of marketable securities

Total intrinsic value

Value of total debt

Value of preferred stock

Intrinsic value of equity

$32$ Number of shares