Solve in EXCEL SHOWING FORMULA.

d. Calculate the current value of operations. (Hint: First calculate the horizon value at the end of the forecast period, which is equal to the value of operations at the end of the forecast period. Assume that the annual growth rate beyond the horizon is equal to the growth rate at the horizon.) How does the current value of operations compare with the current amount of total net operating capital?
Weighted average cost of capital (WACC)	10.5%
	Actual	Projected	Projected	Projected	Projected
	12/31/19	12/31/20	12/31/21	12/31/22	12/31/23
Free cash flow
Long-term constant growth in FCF
Horizon value
Present value of horizon value
Present value of forecasted FCF
Value of operations (]PV of HV] + [PV of FCF])
Total net operating capital
e. Calculate the price per share of common equity as of 12/31/2019
Millions except price per share	Actual
	12/31/19
Value of operations
+ Value of short-term investments
Total value of company
Total value of all debt
Value of preferred stock
Value of common equity
Divided by number of shares
Price per share