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A. Compute WACC B. Compute the current FCFF of the company C. Compute the value of the company D. Compute the value of equity E.

A. Compute WACC

B. Compute the current FCFF of the company

C. Compute the value of the company

D. Compute the value of equity

E. Compute the current value of FCFE

F. Compute the value of equity

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An analyst is following Games Toddlers Inc. and has compiled the following data in preparation for further analysis and valuation of the company. Data are in hundreds of millions of Security typo Market value Boforo tax required returns Security type Market value Before tax required returns Preferred equity L200 7.0% Bonds Common Stocks 14.0% 1500 7.5% 1600 700 Total 125 14 30 100 Bonds are trading at par Net Income available to common Preferred share dividend Investment in working capital Investment in fixed capital New net borrowing Depreciation Tax rate Long term growth of FCFF Long term growth of FCFE 40 50 40% 4% 4%

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