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Calculate Enterprise Value, Equity Value and price per share, based on the information below. Use mid-year discounting, where appropriate. Time 0 Year 1 Year 2

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Calculate Enterprise Value, Equity Value and price per share, based on the information below. Use mid-year discounting, where appropriate. Time 0 Year 1 Year 2 Year 3 Free Cash Flow from $10,000 $15,000 $20,000 Operations Terminal Value $250,000 Cost of Capital 7% Cost of Equity 16% Debt $60,000 Cash $25,000 Shares Outstanding 25,000 SHOW YOUR WORK. Be sure to answer all parts of the question. (a1) Present Value of Free Cash Flow from Operations (a2) Present Value of Terminal Value (a) Enterprise Value (5 POINTS): (b) Equity Value (2.5 POINTS): (c) Price per Share (2.5 POINTS)

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