Good 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.

a) What is the firm's free cash flow at the end of Year 1?

b) What is the firm's horizon value at the end of Year 4?

c) What is the firm's total value today?

d) What is the firm's current equity value of price per share?

In addition, the firm has the following balance sheet items: (000,000) Short-terminvestments=Short-termdebt(notespayable)=Long-termdebt(bonds)=Preferredstock=Numberofsharesofcommonstock=$25$250$300$3075