calculate firm vaue of questar using APV method

The following is information on Questar Enterprises. Portion of debt in capital structure (market value): 35% Portion of equity in capital structure (market value): 65% YTM of existing debt: 4.64\% Equity beta: 1.16 Risk-free rate: 3.31% Risk premium: 6.3% Marginal tax rate (both now and into future): 35% Shares outstanding: 100 million Forecasted FCFs for the next 2 years and beyond 2016: \$102 Million 2017: \$126 Million After 2017: Will grow at 3% per year Forecasted interest expense for the next 2 years and beyond (they expect to utilize all tax shields in the future): 2016: $13 Million 2017: $18 Million After 2017: Will grow at 2% They do not have any net operating losses, nor do they expect any in the future. Calculate the firm value of Questar using the APV method of valuation. Show your work, and state/justify any assumptions and decisions that you make in your analysis. (15 points) Information regarding existing Avon Products, Inc. bonds (from Yahool Finance) Information regarding Avon Products, Inc. common stock (from Yahool Finance) Information about Treasury yields (from Yahoo! Finance)