Johnson Corporations Free Cash Flow for the current year(FCF₀) is $22.5MM.

Johnson Corporation is expecting growth for next year(FCF₁)to be 20%, andgrowth of 12.5% (FCF₂) for the following year.Year 3 (FCF₃) is expected to have a growth rate of 9%.Year 4 (FCF₄) is expected to be 7%.Afteryear 4, Free Cash Flow is expected to grow at constant rate of3% .

Assuming a WACC of 8.75%, calculate the following:

a. FCF1IL'2 point] h. FCF: [U2 point] e. FCF; [U2 point] d. FCF: IL": point) e. Calculate the Horizon 1ital-e for all free cash. ows heyond Year 4 dismounted hack to Year :1. (1 points} 1'. 1iii-"hat is the current 1Falle ofrm for Johnson. Corp-oration? [1 points] 1 Lever-ed Beta and [RPM 4 Points zeta Corporatioa. is in. the process of determining their optimal capital stunt-re. After detailed anatyaia, they have determined that a 35% debt, 65% equityr is. the optima] structure. The following information is provided: T-hills are 3am 15. zm'gmm i2. 35% Zeb'atmleveredheta is 125 Ram nnthe Macbeth 3% Eein'a yidd on debt is. 5.5%. 3. Calculate the levered heta for Zeta Corporatinn, given the optima] capital structure. [2. points] h. What is the required retnrl. on equityr {CAPh-I} for the optimal capital structure? [2 points}