PROVIDE WORK FOR ALL QUESTIONS

Q6) Free Cash Flow Firm (FCFF) and Free Cash Flow Equity (FCFE) The FFCF is expected to be $100,000 for t=1 and t=2. The FCFF is expected to grow at a rate of g=5% per year starting in year t=3. a) If WACC=14% what is the Firm Value? b) If the debt is $350,000 and there are 100,000 shares outstanding, what is the expected price of the stock? The FFCE is expected to be $750,000 for three years (t=1,2,3). The FCFF is expected to grow at a rate of g=8% per year starting in year t=4. c) If the cost of equity is ke=18%, what is the Market Value of Equity? d) If the debt is $1,250,000 and there are 100,000 shares outstanding, what is the expected price of the stock