Permian is buying Earthstone Resources ( oil and gas producer ) for $4.5B.

Assume Permian is issuing new debt at 7% to replace the $972M in debt of Earthstone. Earthstone has 106,300,000 shares outstanding.

Rf = 5% Rmkt = 11% Ba 1.2 (from Damodaran NYU) Tax 30%

EV/FCF = 2.2X for terminal value

Forecast for next five years

Sales 2B 2.4B 2.7B 3.0B 3.4B

Net Income 600M 700M 800M 900M 1000M

FCF 240M 300M 350M 400M 500M

Find WACC and Vfirm, Vequity, V per share. Whats you opinion of the deal?