a) What is the free cash flow to the firm in Year 1?

b) Spiraltex has a corporate cost of capital of 11% and is expected to have a long run growth rate of 4%. What is the horizon value of the firm?

c) Assuming the firm has no short-term investments, what is the total value of the firm?

d) Spiraltex has 6 million common shares outstanding and $75 million in debt. What is the current equity value of the firm's stock price?

Spirialtex Inc., announced aggressive growth plans over the next three years. Below are the expected investments in fixed and working capital and corresponding pro forma income statements for each of the next 3 years