Question 1 - Calculate the terminal value assuming the assumptions below:

Assumptions ($ in millions):

Year 5 FCF $350

Growth 4.0%

WACC 13.0%

Question 2 - Company XRT has the following information:

Terminal year EBITDA 2014E is $745.70

Exit multiple is 6.9x

Discount factor is 0.68

		Projection Period
		2010	2011	2012	2013	2014
Unlevered cash flow		$250.50	$280.80	$315.60	$325.70	$350.80
WACC	8%
Discount Period		0.5	1.5	2.5	3.5	4.5
Discount Factor		0.96	0.89	0.82	0.76	0.71

Using the data provided compute the enterprise value for XRT apply the mid-year convention to discount the projected FCF.