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Part I. Multi-Part Question: The following applies to Questions 1-3. Transcendental Inc. has made a projection of their future cash flows in the table below.

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Part I. Multi-Part Question: The following applies to Questions 1-3. Transcendental Inc. has made a projection of their future cash flows in the table below. The company has a WACC of 15% and the long-run growth rate after year 4 is 5%. The company has $16,000 in total debts and 16,000 shares outstanding. 1 Year: Revenue Cost of goods sold interest expense Depreciation expense Pre-tax income Tax at 30% rofit after tax mange Working Capital ange in Investment in foxed assets Historial -1 0 190,000 200,000 114,000 120,000 10,000 10,000 20,000 20,000 46,000 50,000 13,800 15,000 32,200 35,000 1,000 1,050 3,000 3,000 210,000 126,000 12,000 20,000 52,000 15,600 36,400 1,103 3,150 Forecast 2 3 220,500 231,525 132,300 138.915 15,000 12,000 20,000 20,000 53,200 60,610 15,960 18,183 37,240 42,427 1,158 690 3,308 3,473 243,101 145,861 12,000 20,000 65,241 19,572 45,668 1,000 3,647 Question 1 4 pts a) What is the horizon value and the present value of the horizon value? Show all workings. HTML Edit BIVA A - Ix Ex x : E x TK 12pt Paragraph 3 pts Question 2 b) What is the total firm value? Show all workings. HTML Editor BIV AA- IE 3 3 3 x' x, DE TTT 12pt Paragraph Question 3 3 pts c) What is the value per share? Show all workings. HTML Edit BIYA - A - Ix E 3 3 3 x X, IEE V # 4 V TTTT 12pt Paragraph

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