Question 5 You expect DONUTMIX Corporation to generate the following free cash flows over the next five years: Year 1 FCF ($ millions) 75 2 84 3 96 4 111 5 120 Beginning with year six, you estimate that DONUTMIX's free cash flows will grow at 6% per year and that DONUTMIX's weighted average cost of capital is 15%. a) Calculate the enterprise value for DONUTMIX Corporation. b) If DONUTMIX has $500 million of debt and 14 million shares of stock outstanding, then what is the price per share for DONUTMIX Corporation? 00

Question 5 You expect DONUTMIX Corporation to generate the following free cash flows over the next five years: Beginning with year six, you estimate that DONUTMIX's free cash flows will grow at 6% per year and that DONUTMIX's weighted average cost of capital is 15%. a) Calculate the enterprise value for DONUTMIX Corporation. b) If DONUTMIX has $500 million of debt and 14 million shares of stock outstanding, then what is the price per share for DONUTMIX Corporation