BBB Corporation reported a free cash flow (FCF0) of $18 million. Analysts project its following FCFs will grow at a constant rate of 3% per year. BBBs WACC is 10%. (Draw a timeline to visualize the problem)

a. What are BBBs FCFs in years 1, 2, and 3?

b. What is BBBs total market value (MV0) today?

c. Suppose BBB has $25 million in debt, $15 million in preferred stock, and 10 million shares of common stock outstanding. What