QUESTION 5 [6 marks] Nirvana Corporation is expected to generate the following free cash flows over the next five years: FCF's million) 4 2 2 85 60 After year 5, the free cash flows are expected to grow perpetually at the industry average of 3% per year. Assume all cash flows come in at the middle of each year. a) Using the discounted free cash flow model and an after-tax weighted average cost of capital of 12% to estimate the enterprise value of Nirvana. (4 marks) QUESTION 5 continued: b) If Nirvana has no excess cash, debt of $340 million, and 50 million shares outstanding, estimate its share price. (2 marks)