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***PLEASE PROVIDE THE FORMULA IN EACH PART An analyst is following Games Toddlers Inc. and has compiled the following data in preparation for further analysis

***PLEASE PROVIDE THE FORMULA IN EACH PART

An analyst is following Games Toddlers Inc. and has compiled the following data in preparation for further analysis and valuation of the company. Data are in hundreds of millions of

Security type Market value Before tax required returns

Security type

Market value

Before tax required returns

Preferred equity

200

7.0%

Bonds

600

7.5%

Common Stocks

700

14.0%

Total

1500

Bonds are trading at par

Net income available to common 125

Preferred share dividend 14

Investment in working capital 30

Investment in fixed capital 100

New net borrowing 40

Depreciation 50

Tax rate 40%

Long term growth of FCFF 4%

Long term growth of FCFE 4%

  1. Compute WACC
  2. Compute the current FCFF of the company
  3. Compute the value of the company
  4. Compute the value of equity
  5. Compute the current value of FCFE
  6. Compute the value of equit

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