Assume that you have been asked to place a value on the ownership position in Briarwood Hospital.

Its projected profit and loss statements and retention requirements are shown below (in millions):

Please see attached.

ert Format Tools Table Window Help O FinanceQues - Saved to my Mac Q - 5 Layout References Mailings Review View 9 Tell me wha A- A- Aa . A AaBbCcDdEe AaBbCcDdEr AaBbCcDc AaBbCcDdE Aa X' A.Q . A . E AaBb( Normal No Spacing Heading 1 Heading 2 Title Year 1 Year 2 Year 3 Year 4 Year 5 Net revenues $225.0 $240.0 $250.0 $260.0 $275.0 Cash expenses 5200.0 $205.0 $210.0 5215.0 $225.0 Depreciation $11.0 $12.0 $13.0 $14.0 515.0 Earnings before interest and taxes $14.0 $23.0 527.0 531.0 535.0 Interest 58.0 59.0 $9.0 510.0 510.0 Earnings before taxes 0'95 514.0 518.0 521.0 $25.0 Taxes (40 percent) $2.4 $5.6 $7.2 58.4 510.0 Net profit 53.6 S8.4 $10.8 $12.6 515.0 Estimated retentions 510.0 510.0 510.0 $10.0 510.0 Briarwood's cost of equity is 16 percent, its cost of debt is 10 percent, and its optimal capital structure is 40 percent debt and 60 percent equity. The best estimate for Briarwood's long-term growth rate is 4 percent. Furthermore, the hospital currently has $80 million in debt outstanding. Ja. I need the equity value of the hospital using the free operating cash flow (FOCF) method. b. Suppose that the expected long-term growth rate was 6 percent. I need the impact/change that would have on the equity value of the business according to the FOCF method. I need the growth rate if it were only 2 %. c. I need the equity value of the hospital using the free cash flow to equity holders (FCFE) method. d. Suppose that the expected long-term growth rate was 6 percent. I need the impact and change that it would have on the equity value of the business according to the FCFE yethod. I need the growth rate if it were only 2 %? Engman (United States