Question 24 (12 points) You are analyzing Disrupter Manufacturing Inc. and have collected the following information about the company: Equity information: Equity beta = 1.15, T-bond rate 2%, market return = 12%, # of shares outstanding = 100 millions Debt information: Bond YTM 7%; Total market value of debt: $400 million Tax rate = 21% Capital structure: 35% debt, 65% equity Current FCFF = $125 million. FCFF is expected to grow at 20%, 15%, and 10% for the next 3 years, respectively, then slow down to 5% indefinitely thereafter. Current FCFE = $100 million. FCFE is expected to grow at 7% indefinitely. 1. What are the company's cost of equity (Re) and WACC? (3 points) [Note: if you cannot find WACC, just assume some random number of, let say 10%, so that you can continue with the next questions] 2. Using the firm valuation approach, estimate the total value of the firm, the total value of equity, and the per-share value of equity. (5 points) 3. Using the equity valuation approach, estimate the total value of equity and the per-share value of equity. (4 points) (You can solve in Excel and paste your answer in the answer box, or type your answer in. If you are confident with your answer, you can just type the numbers (without showing the calculation.) For example, Firm Value = $xxx, Equity Value = $xxx, Equity value per share = $xxx)