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Alpha Inc company has 2 million shares outstanding. Below are the forecasted sales and expenditures for the next five years: 3 4 Year 0 1

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Alpha Inc company has 2 million shares outstanding. Below are the forecasted sales and expenditures for the next five years: 3 4 Year 0 1 2 Sales and investments forecast ( millions): 5 Sales Gross fixed assets Depreciation 120 90 130 104 15.6 136 120 17 147 134 18.6 158 147 19.2 168 162 19.5 Alpha Inc's costs of goods sold, other costs, and the net working capital requirement are expected to be 70%, 15%, and 10% of sales over the years, respectively. Profits are subject to a tax rate of 30%. Question: 1. Suppose Alpha Inc's free cash flows are expected to grow at a 5% rate beyond year 5, what is the value of Alpha Inc? 2. What is the value of equity and value per share of Alpha Inc company? (Rounding to two decimal places) Alpha Inc company has 2 million shares outstanding. Below are the forecasted sales and expenditures for the next five years: 3 4 Year 0 1 2 Sales and investments forecast ( millions): 5 Sales Gross fixed assets Depreciation 120 90 130 104 15.6 136 120 17 147 134 18.6 158 147 19.2 168 162 19.5 Alpha Inc's costs of goods sold, other costs, and the net working capital requirement are expected to be 70%, 15%, and 10% of sales over the years, respectively. Profits are subject to a tax rate of 30%. Question: 1. Suppose Alpha Inc's free cash flows are expected to grow at a 5% rate beyond year 5, what is the value of Alpha Inc? 2. What is the value of equity and value per share of Alpha Inc company? (Rounding to two decimal places)

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