1. Armor corporation is a fast-growing firm that you are interested in acquiring. You have forecast the free cash flows for the next 5 years, which are shown in the table below. You believe that cash flows will grow at 10 percent per year for years 6 through 15. After that, you forecast that ABC will have matured and will have 4 percent growth. Assume a 12 percent discount rate, 10 million shares outstanding, and 20 million in net debt (market value).

Year	1	2	3	4	5
Free Cash Flow	6.8 M	6.5 M	8.9 M	11.5 M	13.2 M

1. Calculate the present value of the forecasted cash flows (years 1-5).

2. Calculate the present value of the forecasted cash flows for years 6-15.

3. Calculate the present value of the terminal cash flows (years 16 onward).

4. Calculate the total enterprise value and the implied stock price.

5. Suppose we wanted to take a short cut by assuming one terminal growth rate to handle all cash flows after year 5. What terminal growth rate would give us the same enterprise value as we found in part d?