A group of investors is intent on purchasing a publicly traded company and wants to estimale the highest price they can reasonably justify paying. The tarcet company's equity beta is $120$ and its debt$-$to$-$furm value tatio, measured using market values, is $60$ percent. The investors plan to improve the larget's cash flows and sell it for $12$ times free cash flow in year five Projected free rash flows and seling price are as follows.