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):

	Year 1	Year 2	Year 3	Year 4	Year 5
Net revenues	$225.0	$240.0	$250.0	$260.0	$275.0
Cash expenses	$200.0	$205.0	$210.0	$215.0	$225.0
Depreciation	$11.0	$12.0	$13.0	$14.0	$15.0
Earnings before interest and taxes	$14.0	$23.0	$27.0	$31.0	$35.0
Interest	$8.0	$9.0	$9.0	$10.0	$10.0
Earnings before taxes	$6.0	$14.0	$18.0	$21.0	$25.0
Taxes (40%)	$2.4	$5.6	$7.2	$8.4	$10.0
Net profit	$3.6	$8.4	$10.8	$12.6	$15.0
Estimated retentions	$10.0	$10.0	$10.0	$10.0	$10.0

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.

A. suppose now you decide to use the free cash flow to equity holders (FCFE) method to find the equity value of the hospital. What is the FCFE in year 1?

B.what is the FCFE in Year 2?

C. what is the terminal value

D.what is the equity value of the hospital using the free cash flow to equity holders method?