Q$6)$ 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 $k_e=18\%,$ 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?