Question :

You are the head of the acquisitions department of a company. The potential investment in a steel manufacturing company, Steel Co., is currently under review. Below is some information about the projections.
						Year 2	Year 3	Year 4	Year 5	Year 6	After Year 6
Growth rate estimation						5%	3%	2%	4%	5%	3%
EBIT						$203,700	$157,400	$131,000	$133,000	$138,300	$140,000
Assets						$115,000	$102,000	$83,200	$38,000	$38,900	$40,200
Operating liabilities						$34,500	$34,500	$26,000	$9,100	$9,300	$9,600
Number of outstanding shares				27,250
Current share price				$20.91
Net debt				$240,000
WACC				8%
Inflation				3%
Effective tax rate				40%
Terminal growth rate				3%
Terminal date				Year 6
Extract from the reformatted income statement
				Year 0	Year 1
Tons of steel sold				26,000	33,100
Selling price per ton				$630	$620
Cost price per ton				$540	$545
Sales				$16,380,000	$20,522,000
Cost of goods sold				$14,040,000	$18,039,500
Gross profit				$2,340,000	$2,482,500
Sales, general, and admin costs				-$234,000	-$248,250
Operating expenses				-$1,962,000	-$2,040,250
EBIT				$144,000	$194,000
Extract from the reformatted balance sheet
				Year 0	Year 1
Accounts receivable				$1,723,400	$2,241,000
Inventory				$2,480,000	$3,462,000
Other current assets				$6,222,050	$5,100,860
Ending PPE (net)				$5,078,650	$5,093,140
Total assets				$15,504,100	$15,897,000
Accounts payable				$776,809	$1,042,146
Other current liabilities				$5,825,971	$5,284,134
Long-term operating liabilities				$3,941,020	$3,942,420
Capital				$4,960,300	$5,628,300
Liabilities and owner's equity				$15,504,100	$15,897,000
Answer the following questions based on this information in the corresponding answer tabs provided:
Question 1
Calculate a five-year free cash flow for Steel Co., starting from Year 2.
Question 2
Calculate the terminal value of the cash flow after Year 6.
Question 3
Calculate the discounted cash flow value for Steel Co.

Answer 1 : Please review the below and suggest

Free cash flow projection
	Year 2	Year 3	Year 4	Year 5	Year 6	After Year 6
EBIT	$203,700	$157,400	$131,000	$133,000	$138,300
Effective tax rate	40%	40%	40%	40%	40%
After-tax EBIT	$122,220	$94,440	$78,600	$79,800	$82,980
Adjustments:
MINUS Assets	$115,000	$102,000	$83,200	$38,000	$38,900
PLUS Operating liabilities	$34,500	$34,500	$26,000	$9,100	$9,300
Free cash flow	$41,720	$26,940	$21,400	$50,900	$53,380

Answer 2 : Please review below and suggest

Free cash flow projection
					After Year 6
EBIT					$138,300
Effective tax rate					40%
After-tax EBIT					$82,980
Adjustments:
MINUS Assets					$38,900
PLUS Operating liabilities					$9,300
Projected cash flow for the first year after maturity					$53,380
WACC					8%
Growth rate					3%
Terminal value					$1,099,628

Answer #3 need your help

Free cash flow projection
	Year 2	Year 3	Year 4	Year 5	Year 6
Free cash flow	$41,720	$26,940	$21,400	$50,900	$53,380
WACC	8%	8%	8%	8%	8%
Present value of FCF
Sum of FCF PV
Terminal value
Present value of terminal value
Net debt
Equity value of company
Number of outstanding shares
Per-share fair value estimation