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please solve this by hand and ulpoad photo. i am having toruble finding the wacc Dividend Discount Si Puth Debt n by Borrowing 500m 19.

please solve this by hand and ulpoad photo. i am having toruble finding the wacc
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Dividend Discount Si Puth Debt n by Borrowing 500m 19. Purple Wagon Inc. plans to finance their expansion by borrowing$40 million pnd halting dividends. Projected future free cash flows (FCF): Year 1 FCF -$5 million Year 2 FCF - $10 million. Year 3 FCF = $30 million FCF grows at constant rate of 4% after year 3. The company has 10 million shares of stock. The firm does not have preferred shares. The firm's cost of equity is 10%. The risk free rate is 2%. The firm's cost of debt is 4%. The corporate tax rate is 20%. The firm finances 30% of its assets with debt. o They have $5 million in cash. o o o o o Estimate a share price for Purple Wagon Inc. Clearly breakout and label the steps necessary. (45 points) 10 30

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