Quantitative Problem 1: Assume today is December 31, 2019. Alarrington Industries expects that its 2020 after-tax operating income [EBrr(t1)] nill be $450million and its 2020 depreciation expense will be $70 million. Alarrington's 2020 gross capital expenditures are expected to be $120 malition and the change in its net operating working capital for 2020 will be $20 million. The firm's free cash flow is expectod to grow at a constant rate of 5.5% annully. Assume that its free cash flow occurs at the end of each year. The firm's weighted average cost of capital is 8.9%; the maket value of the company/s debt is $3 bilion; and the company has 180 million shares of common stock outstanding. The firm has no preferred stock on its balance sheet and has no plans to use it for future capital budgeting projects, Atso, the firm thas zero non-operating assets. Using the corporate valuation model, what should be the company's stock price todsy (Dectmber 31, 2019)? Do not round intermediate caloulations. Round your answer ta the nearest cent. 5. pershare Quantitative Problem 2: Hadley the forecasts the verar-end free cash flows (in millions) shown below. The weighted average cost of caphtal is 10%, and the FCFs are expected to continue growing at a 3Hs rate after Year 5 . The firm has $26 mallon of market-value debt, but it has to preferred stock or any other outstanding claims. There are 18 million shares outstanding. Also, the firm has zero non-operating assets. What is the valur af the stick pifce todsy Chear o)? Round your answer to the neareit cent, Do not round intermediate calculations. 5: per share the stock. Thestatement above is Conclusions