Compressed APV with Nonconstant Growth

Sheldon Corporation projects the following free cash flows $($FCFs$)$ and interest expenses for the next $3$ years, after which FCF and interest expenses are expected to

grow at a constant $5\%$ rate. Sheldon's unlevered cost of equity is $13\%$ its tax rate is $45\%.$

Free cash flow $($$ millions$)$

Interest expense $($ $ millions$)$

a$.$ What is Sheldon's unlevered horizon value of operations at Year $3?$ Enter your answers in millions. For example, an answer of $$10,550,000$ should be entered

as $10\mathrm{.}55.$ Do not round intermediate calculations. Round your answer to two decimal places.

$

million

b$.$ What is the current unlevered value of operations? Enter your answers in millions. For example, an answer of $$10,550,000$ should be entered as $10\mathrm{.}55.$ Do not

round intermediate calculations. Round your answer to two decimal places.

$

million

c$.$ What is horizon value of the tax shield at Year $3?$ Enter your answers in millions. For example, an answer of $$10,550,000$ should be entered as $10\mathrm{.}55.$ Do not

round intermediate calculations. Round your answer to two decimal places.

$

million

d$.$ What is the current value of the tax shield? Enter your answers in millions. For example, an answer of $$10,550,000$ should be entered as $10\mathrm{.}55.$ Do not round

intermediate calculations. Round your answer to two decimal places.

$

million

e$.$ What is the current total value of the company? Enter your answers in millions. For example, an answer of $$10,550,000$ should be entered as $10\mathrm{.}55.$ Do not

round intermediate calculations. Round your answer to two decimal places.

$

million