It is December 2021. You work as a financial analyst for Merck & Co. and are tasked with the due diligence on the proposed acquisition of a biotech startup. You estimated the following cash flows for the startup: Year Expected cash flow from assets ($ million) (end of year)

2022 68.5

2023 102.75

2024 133.58

2025 160.29

2026 176.32

After 2026, cash flows are expected to grow by 4% per year. Based on the riskiness of your industry, you think that your weighted average cost of capital is 14%. The biotech firm has 5 million shares and bonds worth $120 million outstanding.

Part 1 What is the terminal value, i.e., the present value of all free cash flows from 2027 to infinity expressed in 2026-dollars (in $ million)? 0+ decimals

Part 2 What is the total value of the company (in $ million)? 0+ decimals Attempt 1/5 for 2 pts.

Part 3 What is the value per share of common stock (in $)?