Germinal Corporation manufactures solar cells for electric cars. As the company had an acquisiton offer of $77million dollarsfor the firm, Emile Zola (CEO of the company) wants to value thecompany himself.Due to the nature of the business, Zola expects supernormal growth in the first five years and beyond the 5th year firm will reach to stable growth. The supernormal growth rate is 17%. The company is expected to have the net income of $1000000, dividends of $400000 and the common equity of $10000000 in the 5th year financial statements. Last years FCF (FCF0) is $7000000 and the WACC is 27% throughout the life of the company.Suppose the company has $5000000 debt and has 7million shares outstanding

.a.Calculate the expected FCFs for the first five years. (5 pts)

b.Calculate the sustainable stable growth rate. (5 pts)

c.Calculate the horizon value for the years beyond the 5th year. (5 pts)

d.Calculate the firm value of the company. (5pts)

e. Calculate the PPS of the company(5 pts)

f. Evaluate whether he should accept the offer or not.(5 pts