Go Times Inc. has current sales of $7,500 (in millions), an operating ratio of 6%, a capital requirement ratio of 40%, a tax rate of 40% and a corporate cost of capital of 8%. Under new management sales are expected to grow 15% in Yr 1, 15% in Yr 2, 10% in Yr 3, 5% in Yr 4 and then grow at a constant rate of 4% after Yr 4.

In addition, the firm has the following balance sheet items: (000,000)

Short-term investments = $25

Short-term debt (notes payable) = $250

Long-term debt (bonds) = $300

Preferred stock = $30

Number of shares of common stock = 75 1.

What is the firms free cash flow at the end of Yr 1?

What is the firms horizon value at the end of Yr 4? $13,011.28 $9,035.50 $12,198.08 $14,637.70 $8,326.23

3. What is the firms total value today? Group of answer choices $10,312.54 $9,669.57 $12,308.94 $11,598.48 $11,228.96

4. What is the firms current equity value of price per share? $146.91 $115.85 $150.26 $129.77 $121.19