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. Finance Analyst is evaluating Datta Inc. using the FCFF and FCFE valuation approaches. Finance has collected the following information: . Datta has EBIT of

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. Finance Analyst is evaluating Datta Inc. using the FCFF and FCFE valuation approaches. Finance has collected the following information: . Datta has EBIT of $508 million, depreciation of 90 million, capital expenditures of 170 million, and an increase in working capital of 40 million Datta will finance 40 percent of the increase in net fixed assets (capital expenditures less depreciation) and 40 percent of the increase in working capital with debt financing. Interest expenses are 150 million. The current market value of Datta's outstanding debt is 1,800 million, FCFF is expected to grow at 6.0 percent indefinitely, and FCFE is expected to grow at 7.0 percent The tax rate is 30 percent. Datta is financed with 40 percent debt and 60 percent equity. The before-tax cost of debt is 9 percent and the before-tax cost of equity is 13 percent. Datta has 10 million outstanding shares Based on the above information answer the following 4 questions: . Question 6 What is the Free Cash Flow to the Firm (FCFF)? O $235.60 million O $239.80 million O $298.05 million O $252.79 million $316.28 million D Question 7 What is the discount rate that Finance should use to discount the above cash flow? 22% O 6.30% 11.29% 13% 10.3296 D Question 8 What is the total market value of the firm (enterprise value)? $5623.90 million O $5780.93 million O $6723.39 million $5439.80 million O $5650.29 million D Question 9 What is the value per share? O $380.45 $543.98 $565.03 $578.09 $398.09 Question 10 Based on a term paper this semester, the three methods of going public are: O IPOs, Direct Listings, and SPACS O IPOs, Divestitures, and Stock Splits O IPOs, Executive Stock Options, and Seasoned Stock Offerings O IPOs, Seasoned Stock Offerings, and Mergers none of the answer choices is correct

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