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please answer all of question 3 3). Using the following free cash flow data: a. Calculate the growth in cash flow between 2019 and 2020
please answer all of question 3
3). Using the following free cash flow data: a. Calculate the growth in cash flow between 2019 and 2020 b. Prepare a 5 year cash flow forecast based upon the rate of growth in cash flow (20212025) c. Calculate the net present value of the forecasted cash flows assuming an investment cost of $18,500,000 in the beginning of 2021 Estimate cost of capital using the following data: - Market value of debt - $600,000 - Market value of equity - $1,400,000 - Current yield on debt 7.3% - Tax rate 35% - Expected market return - 12% - Current 10 year US Treasury - 3.8\% - Beta -2.1 d. State your opinion on whether you would make the investment and why Step by Step Solution
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