CLARK CORPORATION QUESTIONS $-$ PART I.

Clark Corporation projects the following free cash flows $($FCF$)$ and

interest expenses for the next $5$ years, after which FCF and interest

expenses are expected to grow at a constant rate of $3\%.$ Clark's unleverec

cost of equity is $16\%$ and its tax rate is $25\%.$

Using the CAPV approach what is Clark's unlevered horizon value of

operations at Year $5$ and what is the current unlevered value of

operations?CLARK CORPORATION QUESTIONS $-$ PART II$.$

Based on the information and numbers from PART I, using the CAPV

approach what is the horizon value of the tax shield at Year $5$ and what is

the current value of the tax shield?