Selected data for the Derby Corporation are shown below. Use the data to answer the following questions INPUTS (In millions) Current 0 Year Projected 2 $20.0 1 3 $80.0 $20.0 $84.0 Free cash flow Marketable Securities Notes payable Long-term bonds Preferred stock WACC Number of shares of stock $40 $100 $300 $50 9.00% 40 Calculate the estimated horizon value (..., the value of operations at the end of the forecast period immediately after the Year 4 free cash flow). Assume growth becomes constant after Year 3. Current 0 Projected 2 1 3 -$20.0 $20.0 $80.0 $84.0 Free cash flow Long-term constant growth in FCF Horizon value b. Calculate the present value of the horizon value, the present value of the free cash flows, and the estimated Year 3 value of operations. PV of horizon value PV of FCF Value of operations (PV of FCF + HV) c. Calculate the estimated Year0 price per share of common equity. Valun of operations Plus value of narketable securities Total value of company Less value of debt Loss value of preferred stock Estimated value of common equity Divided by number of shares Price per share