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Suppose that a company has a net free cash flow of $ 5 million and is expected to grow at 3 0 % during the

Suppose that a company has a net free cash flow of $5 million and is expected to grow
at 30% during the next 3 years and then grow at 7% thereafter. The company has debt
of $75 million and 5,000,000 shares of outstanding common stock. The company pays
no dividends and since it would like to retain its earnings, it is not expected to pay any
dividends. What is the firm's equity value assuming the discount rate is 12%? What is
the firms intrinsic value?

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