Roosevelt, Inc. - \\( \\mathrm{FCF}_{0}=4,711.54 \\) - FCF grows at a constant rate \=4.0 - \WACC=11.0 - S.T. Investments \\( =5,000 \\) - L.T. Debt \\( =25,000 \\) - Stocks Outstanding: \\( \\mathrm{N}=2,500 \\) What is the: 1. value of operations? 2. value of the firm? 3. value of equity? 4. fair or implied price of one share of stock? Formulas: \\[ \\begin{array}{l} \\mathrm{FCF}_{1}=\\mathrm{FCF}_{0} \\times(1+\\mathrm{g}) \\\\ \\mathrm{V}_{\\mathrm{OP}}=\\mathrm{FCF}_{1} \\div\\left(\\mathrm{WACC}-\\mathrm{g}_{\\mathrm{L}}\ ight) \\\\ \\mathrm{V}_{\\text {Firm }}=\\mathrm{V}_{\\mathrm{OP}}+\\text { S.T. Investments } \\\\ V_{\\text {Equity }}=V_{\\text {Firm }}-\\text { Debts } \\\\ P_{0}=V_{\\text {Equity }} \\div N \\\\ \\end{array} \\] Roosevelt, Inc. - \\( \\mathrm{FCF}_{0}=4,711.54 \\) - FCF grows at a constant rate \=4.0 - \WACC=11.0 - S.T. Investments \\( =5,000 \\) - L.T. Debt \\( =25,000 \\) - Stocks Outstanding: \\( \\mathrm{N}=2,500 \\) What is the: 1. value of operations? 2. value of the firm? 3. value of equity? 4. fair or implied price of one share of stock? Formulas: \\[ \\begin{array}{l} \\mathrm{FCF}_{1}=\\mathrm{FCF}_{0} \\times(1+\\mathrm{g}) \\\\ \\mathrm{V}_{\\mathrm{OP}}=\\mathrm{FCF}_{1} \\div\\left(\\mathrm{WACC}-\\mathrm{g}_{\\mathrm{L}}\ ight) \\\\ \\mathrm{V}_{\\text {Firm }}=\\mathrm{V}_{\\mathrm{OP}}+\\text { S.T. Investments } \\\\ V_{\\text {Equity }}=V_{\\text {Firm }}-\\text { Debts } \\\\ P_{0}=V_{\\text {Equity }} \\div N \\\\ \\end{array} \\]