Problem 2 s company, is evaluating the egjonal cable company. VolWorld's in thousands of dollars, with a Vol World Communications, Inc., a large telecommunications company, is e possible acquisition of Bulldog Cable Company (BCC), a regional cable com analysts project the following post-merger data for BCC (in thousands of dollar December 31 year-end): 2015 2016 2018 2019 2020 $450 $555 -361 $600 -390 -293 $643 -418 225 157 1992954 Net Sales Cost of Goods Sold Gross Profit Op. Expenses EBIT Taxes (35) NOPAT 194 -60 134 -73 09 TNOC $800 $850 $930 $1,005 $1,075 $1,150 Interest Expense $40 S47 $52 $54 Debt Change +$50 +$50 +$20 +$50 +$40 Is = 11.6% WACC = 9.56% g = 7% beyond 2020 Use the Corporate Valuation model to calculate the PV of FCF and use the Free Cash Flow to Equity model to calculate the PV of FCFE; both values are as of today Gi.e. 12/31/15). Assume all cash flows occur at the end of each respective year. Assume the current debt value 1