Beth would like to value Orange, Inc. using the discounted cash flow (DCF) method.

She forecasts Free Cash Flows (FCFs) of $135 million, $145 million, $146 million, respectively for years 1, 2, and 3.After year 3, she assumes FCFs will increase by 2% forever.

Beth calculates the below input variables to compute Orange's cost of equity, debt, and enterprise value.

Cost of Equity

Risk-Free-Rate = 3 percent

Beta = 1.03

Return of Market Portfolio = 7%

Debt Financing

Debt to Equity Ratio = 45%

Market Value of Zero-Coupon Bonds = $100 million or 75 percent of par value

Maturity of Zero-Coupon Bonds = 15 years

Tax Rate = 35%

What is Orange Inc's Enterprise Value?Assume a WACC of 8.9% and constant growth rate of 2 percent to perpetuity and Beth's FCF forecasts.