FCF Valuation Problem Today is December 31, 2021. The following information applies to Gamco Company: EBIT2021 =$550M Cash balance2021 =$20M Marketable securities2021 =$85M Depr2021 =$30M CAPEX =$170M Change in WC =$50M Government Bond yield =5% Market Risk Premium =6% Beta=1.25 Return on capital (ROC)=15% The Yield to Maturity (YTM) on the company's 10-year bonds =7.5% Tax rate =35% Market Value of Debt =$1400M Current market Price =55$ Number of Shares outstanding =12M Stable growth =3% (after 5 years) 1) Calculate FCF2021 2) Calculate the WACC 3) Calculate the Value of operations in 2021 4) Calculate the Value of the firm in 2021 5) Calculate the Value of equity in 2021 6) Calculate the firm's intrinsic value in 2021