a) Find the value of MCI based on the free cash flows during the forecast period only, (exhibits 9A and 9B) i.e. ignoring the continuing value or terminal value. At the time of the case, it would have been reasonable to make the following assumptions: rF= 10.5%, rM-rF=5% and 0.77. b) Find the continuing value (or terminal value) to complete the DCF analysis. Assume that after the forecast period, MCI will move to a long-term D/V ratio of 0.5. Based on your analysis, is MCI fairly valued at $47? a) Find the value of MCI based on the free cash flows during the forecast period only, (exhibits 9A and 9B) i.e. ignoring the continuing value or terminal value. At the time of the case, it would have been reasonable to make the following assumptions: rF= 10.5%, rM-rF=5% and 0.77. b) Find the continuing value (or terminal value) to complete the DCF analysis. Assume that after the forecast period, MCI will move to a long-term D/V ratio of 0.5. Based on your analysis, is MCI fairly valued at $47