Due online by Sunday, November $27,2022$ at $11$:$59$pm$.$ You can use an Excel spreadsheet

to do this assignment. In fact, that will make it easier and then just upload your Excel.

Otherwise, you can do it by hand and then scan your answer to upload.

You have just been asked to evaluate the value of the following company. The estimated

free cash flows are given below. After $2025,$ it is assumed that FCF will grow at $2\%$

annually. The Beta for the firm is $1\mathrm{.}5$ and its marginal tax rate is $39\%.$ The current $10-$

year treasury rate is $2\%$ and the expected market risk premium is $5\%.$ The firm's cost of

debt is $7\%.$

Assuming that the firm will maintain a constant debt to value ratio of $40\%$ forever

with no excess cash, answer the following questions.

a$.$ Estimate the value of the firm and the value of the firm's equity using the WACC

FCF method.

b$.$ Estimate the value of the firm and the value of the firm's equity using the APV

method.

c$.$ Estimate the value of the firm's equity using the Flows to Equity method.