Please see attached.

1. I need the equity value of the hospital using the free cash flow to equity holders (FCFE) method.

2

View Insert Format Tools Table Window Help . Mon Mar 25 9: FinanceQues Design Layout References Mailings Review View Table Design Layout 9 Tell me what you want to do A- A- Al - . Ap E ..E. AnBbCeDiddlte AabbceOdie AaBbCcDc AnBb CcDdEr AaBb AnBb CcOdEd Herding't Heading 2 Assume that you have been asked to place a value on the ownership position in Briarwood Hospital. Its projected profit and loss statements and retention requirements are shown below (in millions): Year 1 Year 2 Year 3 Year 4 Year 5 Net revenues 5225.0 5240.0 5250.0 $260.0 $275.0 Cash expenses 5200.0 $215.0 5225.0 Depreciation I 5205.0 $210.0 $11.0 $12.0 $13.0 $15.0 Earnings before Interest and taxes $14.0 $14.0 $23.0 $27.0 Interest 531.0 535.0 58.0 59.0 $9.0 Earnings before taxes $10.0 510.0 56.0 $14.0 $18.0 Taxes (40 percent) 525.0 $2.4 $5.6 $7.2 Net profit $10.0 $3.6 $10.8 Estimated retentions 515.0 510.0 510.0 $10.0 $10.0 Briarwood's cost of equity is 16 percent, its cost of debt is 10 percent, and its optimal capital structure is 40 percent debt and 60 percent equity. The best estimate for Briarwood's long-term growth rate is 4 percent. Furthermore, the hospital currently has $80 million in debt outstanding. English (United States) Focus