Put 1 for all X

5) Machka Food Corporation is expected to generate the following free cash flows over the next four years: 3 Year 1 2 3 4. FCF($Million) 2x X5 4x 1 After then, the free cash flows are expected to grow at the industry average of 1x% per year. a) If Machka Food's weighted average cost of capital is 20%, compute the firm value by using discounted free cash flow model. (15 pts) b) If Machka Food has debt of $8x million, and x million shares outstanding, estimate its share price. (5 pts) (X=1