Josie Inc. is a levered firm with 100,000 shares outstanding and $8,000,000 in long-term debt. The firm currently trades for $186.77 per share. An analyst has projected the following net incomes (after taxes and interest) and partial balance sheet items for the following three years, which are given in the table below. The analyst projects a long-term growth of the free cash flows at a constant rate of 3% after year 3 . 1. Calculate the free cash flow to equity holders for each future year. 2. The firm has an equity beta of 1.44 . The market return is 10% and the current annual risk-free rate is 4.85%. What is the cost of equity capital of the firm? 3. Using the Gordon Growth Model, what is the terminal value in year 3 ? 4. What is the value of the firm's equity? 5 . What is the value of the total firm? 6. What is the intrinsic stock price? 7. Given your valuation, would you recommend buying, selling, or holding stock of this firm