Hectoritis Corp. currently has an FCF of $13 million. A reputable analyst estimates that this FCF is anticipated to increase by 12% per year for the next 5 years. The analyst esti- mates that at the end of 5 years the companys terminal value will be based on the year-5 FCF and a long-term FCF growth rate of 4%. Suppose the Hectoritis = 1.5, the rf = 3%, the market risk premium E(rM )rf = 14%, and Hectoritis has 8 million shares outstanding. How should the analyst value the shares of the company? Assume all cash flows occur at year end. a. what is WACC? b. what is FCF in year 5? c. what is terminal value in year 5.

Please solve using excel format.