Delta Industries is an all$-$equity firm, and it has $50$ million outstanding shares. The

following projected free cash flow to the equity holders $($FCFE$)$ for the next four

years:

$($$ millions$)$

Answer the questions in red please.

Suppose Delta's revenue and free cash flow are expected to grow at a $5\%$ rate beyond year $4,$

and Delta's minimum attractive rate of return $($MARR$)$ is $12\%.$

Q$3.$ What is your estimate of the entire firm's value today based on this information?

Q$4.$ What is your estimate of the current share price of Delta's stock based on this

information?

Q$7.$ Identify the variables with the greatest effect on the valuation results by

using sensitivity analysis.