Lockheed Corporation, one of the largest defense contractors in the U.S., reported EBITDA of \$1290 million in 1993 , prior to interest expenses of $215 million and depreciation charges of $400 million. Capital Expenditures in 1993 amounted fo $450 million, and working capital was 7% of revenues (which were $13,500 million). The firm had debt outstanding of $3.068 billion (im book value terms), trading at a market value of $3.2 billion, and yielding a pre-tax interest rate of 8%. There were 62 miltion shares outstanding, trading at $64 per share, and the most recent beta is 1.10. The tax rate for the firm is 40%. (The treasury bond rate is 7% and the market risk premium is 5.5%.) The firm expects revenues, camings, capital expenditures and depreciation to grow at 9.5% a year from 1994 to 1998 , after which the growth rate is expected to drop to 4%. Estimate the value of the firm. Estimate the value of the equity in the fim and the value per share. FCF Valuation