Machka FoodCorporation is expected to generate the following free cash flows over the next fouryears:

x=1

After then, the free cash flows are expected to grow at the industry average of 11% per year

a) If Machka Foods weighted average cost of capital is 20%, compute the firm value by using discounted free cash flow model

b) If Machka Foodhas debt of $81 million, and 1 million shares outstanding, estimate its share price.

Year 1 FCF($Million 2x 2 3x 3 x5 4 4x