BEAR is a newly public firm with 10 million shares outstanding. You are doing a valuation of BEAR, using the DCF method. You estimate its free cash flow next year to be $15 million and you expect the firms free cash flows to grow by 3% per year in all future years. Because the firm has only been listed on the stock exchange for a short time, you do not have an accurate estimate of BEARs equity beta,

However, you do have an estimate of the equity beta of BUCK, another firm in the same industry. BUCK has an equity beta of 1.50. BUCK has a Debt/Equity ratio of 1.2, but BEAR has a Debt/Equity ratio of only 0.30. Both BEAR and BUCK pay corporate income taxes at the same rate of 20%. The risk-free rate = 4.0%; the return on the market portfolio = 10%; the interest rate on BEARs debt = 5.0%.

a. Calculate the equity beta of BEAR. b. Calculate BEARs equity cost of capital c. Calculate BEARs WACC (weighted average cost of capital).

d. Calculate the Enterprise Value of BEAR.

e. If BEAR has no excess cash and if BEAR has $64.3 million in interest bearing debt, what is the equity value of BEAR?

f. Calculate the price per share of BEARs stock

please solve in excel, thank you