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 1.5 and its marginal tax rate is 39%. The current 10-year treasury rate is 2% and the expected market risk premium is 5%. The firms 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 firms equity using the WACC FCF method.

b. Estimate the value of the firm and the value of the firms equity using the APV method.

c. Estimate the value of the firms equity using the Flows to Equity method.

($ millions)	2020	2021	2022	2023	2024	2025
FCF		200	240	280	320	360
Debt	2,344.95	2,438.66	2,523.32	2,598.24	2,662.72	2,715.98