Start with the partial model in the file Ch08 P22 Build a Model.xlsx on the textbook's web site. selected data for the derby corporation are shown below. Use the Data to answer the following questions.

INPUTS (In Millions)	Year
	Current	Projected
	0	1	2	3	4
Free cash flow		-$20.0	$20.0	$80.0	$84.0
Marketable securities	$40
Notes payable	$100
Long-term bonds	$300
Preferred stock	$50
WACC	9.00%
Number of shares of stock	40

a. Calculate the estimated horizon value (i.e., the value of the operations at the end of the forecast period immediately after the Year-4 free cash flow).

b. Calculate the present value of the horizon value, the present value of the free cash flows, and the estimated Year-0 value of operations.

c. Caclulate the estimated Year-0 price per share of common equity.