Q5-Q9 are related to the following information. - It is currently the beginning of 2023. Corporate tax rate =20%. The firm's equity beta =2. Risk free rate = 6%. Market risk premium =5%. The cost of debt of the company =10%. The company capital structure consists of 30% debt and 70% equity. - Annual sales = $500 million for the next four years (from 2023 through 2026), and then will be growing at 2% starting 2027. Net income =32% of sales; Interest expenses =2% of sales; Depreciation =9% of sales. - Investment in gross fixed assets =35% of sales; Investment in working capital (excluding cash and short-term debt) =6% of sales; 20% of the investment in assets (including investments in gross fixed assets and working capital) will be financed with debt. 5. Calculate the WACC of the company. A. 14.2% B. 11.8% C. 13.6% 6. Calculate the FCFF (Smillion) for year 2023. Hint: use this formula: FCFF=EBIT(1T)+DEP-CAPX-ANWCNetIncome+Interest(1T)+DEPCAPXANWC A. 6 B. 8 C. 10 7. Assume that the answer to Q6 = 5, calculate the FCFE (Smillion) for year 2023. Hint: use this formula: FCFE=FCFF - Interest(1-T) + Net borrowing A. 38 B. 47 C. 35 8. Suppose that the FCFE for year 2023 is $60 million, the WACC of the company is 10% and the cost of equity of the company is 13%. Using the FCFE model, what is the present value (as of year 0 ) of FCFE from the first stage (Smillion)? (Note: this is the FCFE model) A. 178.5 B. 190.2 C. 218.7 9. Suppose that the FCFF for year 2023 is 580 million, the WACC of the company is 10% and the cost of equity of the company is 13%. Using the FCFF model, what is the terminal value (i.e., the present value of FCFF as of cnd of Stage 1) (Smillion)? (Note: this is the FCFF model) A. 556.4 B. 741.8 C. 1020.0