a) What is your estimate to the appropriate discount rate during high-growth period?

b) What is your estimate to the appropriate discount rate during stable-growth period?

c) What is your estimate to the terminal Value (TV)?

d) What is your estimate to the total firm value?

e) Suppose Manama Industries has 200 million outstanding shares and $1 billion in debt, what is the value of Manamas stock based on this information?

You have been asked to value Manama Industries, a sports equipment manufacturer and have come up with the following inputs. Base Year Information 2020) Earnings before interest and luxes in 2020 - $600 million Capital expenditures in 2020 - $120 million Depreciation in 2020 - $100 million Revenues in 2020 = $6,000 million Working capital as percent of revenues = 20% Tax rate 70% High-Growth Phase Length of high-growth phase 5 years Expected growth rate in FCFT-15% Beta - 1.30 Cost of debt = 8% (pre-tax) Debt ratio = 30% Risk-free rate - 7% Market Risk Premium (MRP) 6% . Stable-Growth Phase Expected growth rate in FCFF= 3% Beta 1.5 Cost of debt =7% (pre-tax) Debt ratio = 25% Risk-free rate = 7% Market Risk Premium (MRP) - 6% b) What is your estimate to the appropriate discount rate during high-growth period? What is your estimate to the appropriate discount rate during stable-growth period? What is your estimate to the terminal Value (IT)? What is your estimate to the total firm value? Suppose Manama Industries has 200 million outstanding shares and $1 billion in debt, what is the value of Manama's stock based on this information? c)