in year 6. Golden Eye Co., a hi-tech satellite company, has asked you to value the company for possible cross-listing in the U.S. The company has estimated revenues, earnings before interest and taxes, change in net working capital, and net capital expenditures (defined as Capex depreciation) for the next three years (see Exhibit 1 below.) The free cash flow 4 is estimated to be $250 million and is expected to grow at 4% forever. The tax rate for similar firms is 36%. The average unlevered beta of comparable firms is 1.90. Golden Eye Co. has just borrowed $1 billion of long-term debt at 9% interest rate. It will repay $200 million per year in the first three years, and then will maintain the debt at $400 million forever. If the risk-free rate is 6% and the market risk premium is 5.5%, what is the market value of equity of Golden Eye Co.? (6 pts.) +Exhibit 1: Year T=1 T=2 T=3 8,564 Revenues EBIT 6,619 540 150 7,417 680 170 750 Net capex 190 Change in WC 70 75 80 in year 6. Golden Eye Co., a hi-tech satellite company, has asked you to value the company for possible cross-listing in the U.S. The company has estimated revenues, earnings before interest and taxes, change in net working capital, and net capital expenditures (defined as Capex depreciation) for the next three years (see Exhibit 1 below.) The free cash flow 4 is estimated to be $250 million and is expected to grow at 4% forever. The tax rate for similar firms is 36%. The average unlevered beta of comparable firms is 1.90. Golden Eye Co. has just borrowed $1 billion of long-term debt at 9% interest rate. It will repay $200 million per year in the first three years, and then will maintain the debt at $400 million forever. If the risk-free rate is 6% and the market risk premium is 5.5%, what is the market value of equity of Golden Eye Co.? (6 pts.) +Exhibit 1: Year T=1 T=2 T=3 8,564 Revenues EBIT 6,619 540 150 7,417 680 170 750 Net capex 190 Change in WC 70 75 80