• a.Using the WACC rate, calculate the present value of the free cash flows to the firm to 2 decimal places over the next five years.

• b.Calculate the terminal value of A21 Plc to two decimal places and discount it back to express it in present value terms

• c.Calculate the value of A21 Plc. Figures should be rounded to two decimal places.

• d.Calculate the fundamental stock value if the market value of debt is 90 million and the number of outstanding shares is 10 million. Round the figures to two decimal places.

Imagine that you want to use the discounted cash flow valuation method to find the fundamental value of A21 Plc. A projection of the free cash flow to the firm (FCFF) for the next 5 years has been calculated and is provided below. Following this prediction period, you anticipate that the cash flow will continue to grow perpetually at a rate of 3.5% per annum. The weighted average cost of capital (WACC) is 7.8%. Assume that the company will never go bankrupt