Bayani Bakery's most recent FC was $48 million; the FCF is expected it grove at a

sonstant rate of 6%, The Arm's WACC is 12%, and it has 15 milion shares, of coramon

stock outstanding. The firm has 330 milion in shor- term investrents, which it plans to

liquidate and distribute to common shareholders via a stock repurchase; the firm has no

other nonoperating assets. It has $368 million in debt and $60 million in preferred stock

a. What is the value of operations?

b. Immediately prior to the repurchase, what is the intrinsic value of equity?

c. Immediately prior to the repurchase, what is the intrinsic stock price?

d. How many shares will be repurchased? How many shares will remain after the

repurchase?

Immediately after the repurchase, what is the intrinsic value of equity? The intrinsic

stock price?