PLEASE SHOW FORMULAS

8. Exhibit 8.19 displays key financial information for VidCo, an entertainment firm. Fill in the shaded areas of the exhibit to arrive at a value of the oper- ations using the adjusted present value model. Assume that the interest tax shields are as risky as the overall firm. EXHIBI.19 VidCo: Key Financial Figures Smilio Discounted Interest Marginal tax tax shield Discounted interest payment Forecast year 1050 1103 35.0 1158 1216 Prior- year interest debt rate 1.0000 10400 10816 1.1249 11899 1,2157 1,2653 1,3159 16 1,423.3 1.4802 1726 250 1340 1407 1477 150 1561 35.0 Continuing value Continuing value Sum of discounted FCF Sum of discounted ISS Marginal neredens of my 35.00 1000 PV of FCF and ITS Midyar adjustment factor Value of operations