Ecercise 1: Blackhole Ltd. is a company operating in the pharmaceutical sector. The last financial statement registered a loss of $25m and sales for $100m. You want to evaluate the company to decide whether to sell it to a private equity fund. According to your estimates, you think that Blackhole could have a profit of $10m and sales for $300m in 5 years. You know that the pharmaceutical sector has an average asset/sales ratio equal to 3.5. You expect the company not to pay dividends in the next 5 years (i.e. null FCFE). The unlevered beta for pharmaceutical firms is 0.8 and the average tax rate equals 40%. At present, the company has $150m of debt, that you consider as constant in future years. The risk free rate and the market rate of return are respectively equal to 6% and 11%. Find: a. the value of the firm