Please answer the following questions in Excel (answer in one workbook, with separate worksheets for each question):

1- Sematech is an all-equity firm that has achieved a dominant market position in its targeted market. Its huge market share makes it unlikely that the firm can grow faster than the growth rate of the overall market, which is expected to be 8% annually forever. Its net income in 2016 was $15 million. Depreciation expense and capital expenditures were $5 million and $10 million, respectively. The annual change in working capital was minimal. The 10-year Treasury bond rate is 5% and the firms equity beta is estimated to be 1.3. The historical risk premium on stocks over the risk free rate of return is 5.5%.

a-Calculate Sematechs discount rate.

b-Calculate the firms free cash flow in 2016.

c-Estimate the value of Sematech at the end of 2016.

2-Free cash flow last year was $4 million. It is expected to grow by 20% in the current year (assume that you are at the end of the current year), at a 15% rate annually for the five years after that, and then assume a more normal 4% growth rate thereafter (forever). The firms weighted average cost of capital is 10%. What is the value of the firm?

3-Your firm is attempting to value Bulldog Cable Company (BCC), a mid-sized regional cable company with operations in Utah and Wyoming. Analysts at your firm have made the following estimates (in millions; assume a December 31^st year end, that all cash flows occur at the end of the year, and that the 2016 cash flow is exactly one year away):

	2016	2017	2018	2019	2020	2021
Net sales		$450	$518	$555	$600	$643
Selling and administrative expenses		$45	$53	$60	$68	$73
Interest		$28	$26	$27	$25	$22
Depreciation		$21	$22	$26	$20	$19
Net working capital	$800	$850	$930	$1,005	$1,075	$1,150
Other important assumptions:
Tax rate: 35%
Cost of goods sold as % of sales: 65%
BCC's unlevered (or asset) beta: 0.8
Risk-free rate: 3%
Market risk premium: 4% Terminal growth rate (g): 2%
Pre-tax cost of debt: 5.6%

BCCs optimal capital structure is 70% debt (and therefore 30% equity). There are no investments in fixed assets (i.e., CAPEX) planned for BCC in the future. Using free cash flow valuation, what is BCCs enterprise value?