Goodwin Company Key Financial Information projected in year 1 Projected operating income 67M Depreciation Expense 9M Capital Expenditures 12M Tax rate 25% Change in Net Operating Working Capital 7M Long-term Note (interest 7.98%) 50M Short-term Note payable (7.98%) 5M Interest expense rate 7.98% Dividends paid 11M Common Shares Outstanding 25M Target Capital Structure Debt 60% Equity 40% Goodwin Company is publically traded with a projected beta of: 1.20 The risk free rate is 2.00% The return on market is: 10% Year 1 to Year 2 Goodwin's free cash flow is projected to be up 11% Goodwin's free cash flow in year 2 to year 3 is projected to be up 8% After year 3 Goodwin's free cash flow is projected to grow at a constant 3% a. What is Goodwins WACC? b. What is Goodwins firm value (using the corporate valuation model) c. What is the intrinsic value of Goodwins stock (using the corporate valuation model)?