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please show all work and highlight each answer for parts A, B , and C. thank you! 2. Gatekeeper Corp. is a fast-growing supplier of

please show all work and highlight each answer for parts A, B , and C. thank you! image text in transcribed
2. Gatekeeper Corp. is a fast-growing supplier of eccentric hair products. Internal analysts project the following free cash flows (FCFS), in millions of dollars, during the next 5 years, after which FCFs are expected to grow at a constant 4% rate. Gatekeeper's WACC is estimated to be 10%. (12) Year 4 Year 5 Year 1 Year 2 Year 3 -40 30 60 a. What is the current value of operations for Gatekeeper? 80 110 b. Suppose Gatekeeper has $25 million in marketable securities, 590 million in debt, and 15 million shares of stock. What is the intrinsic price per share estimate of Gatekeeper stock today? c. Suppose the aforementioned analyst projections were done by overly optimistic internal budgeting people, and you are a cautious, skeptical analyst who thinks that the initial projections might prove to be incorrect in the following ways: Actual permanent FCF growth after year 5 is only 2.5%...Actual WACC for years 2 and 3 stays at 10%, but the WACC for years 4 and beyond is 11%... The FCF generated in Year 5 is only 100, rather than 110. How much does your intrinsic price per share estimate of Gatekeeper stock change from that you initially estimated in part b

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