Elevation Corporation is expected to generate the following free cash flows (US$) over the next five years (first

cash flow below is one year from today at t=1 years):

Year 1 2 3 4 5

FCF (millions) 20 25 30 35 40

After year 5, the free cash flows are expected to grow at 4% per year. Using the discounted free cash flow model and a weighted average cost of capital of 8%

A. Estimate the current enterprise value or EV0 of Elevation.

B. Elevation has excess cash of $30 million, debt of $120 million, and 10 million shares outstanding. Estimate its current share value.