Based on the data given below, calculate:

a$.$ The FCFF $($Free Cash Flow to the Firm$)$ for the high growth phase and stable phase

b$.$ The terminal value of the firm

Base year Values $($in lakhs$)$

Revenues: $5000$

EBIT: $1200$

Capex: $400$

Depreciation: $250$

Net working Capital: $25\%$ of Revenues

Corporate tax: $25\%$

Paid up Equity: $500$

Market value of Debt: $1200$

High growth period: $4$ years

Revenues: $25\%$

EBIT: $25\%$

Depreciation: $25\%$

Capex: $25\%$

Net working Capital: $25\%$

D$/$E ratio: $1$:$1$

Cost of debt: $6$

Risk free rate: $7$

Risk premium: $10$

Beta: $1\mathrm{.}2$

Stable Phase

Revenues: $10\%$

EBIT: $10\%$

Depreciation $-$ Capex Zero by adjusting for depreciation

Net working Capital: $25$

D$/$E ratio: $2$:$3$

Cost of debt: $6$

Risk free rate: $6$

Risk premium: $11$

Beta: $1\mathrm{.}1$