June 23, 2020; 09:30-13:30 1. Pascal Corporation is a supplier of automotive products. Following free cash flows (FCFS) are forecasted for the next 3 years. FCF is expected to grow at a constant 7% rate after 3 years. Pascal's WACC is 13%. You are the CFO of a big automotive company. Due to the economies of scale, your company plans to acquire Pascal Corporation. Your task is to calculate the followings as the CFO of the company, which plans to acquire Pascal. (20 pts) 1. year -$40 2. year $50 3. year $60 a. What is Pascal's horizon, or continuing, value? (6 pts) b. What is the firm's value today? (6 pts) c. Suppose Pascal has $120 million of debt and 10 million shares of stock outstanding. What is your estimate of current price per share? (8 pts)