Suppose that BKE has the following: Revenue Year + 1 $1,223.50 Year +2 $ 1,323.46 Year + 3 $1,456.00 Net Cash Flow from operations Interest Expense After Tax Net cash flows for investing activities Net cash flows from debt financing Net cash flows into financial assets Net cash flows-preferred stock and noncontrolling interests Year +4 $ 1,529.77 Year + 5 $1,700.45 Year +6 $1,785.45 Year + 1 Year +2 Year + 3 Year +4 Year + 5 Year +6 99.25 121.33 132.78 144.98 152.44 170.220 18.55 12.45 16.77 17.87 21.33 15.89 $ 24.00 $ (12.00) $ (33.50) $ (12.44) $ 10.45 $ 22.34 $ 25.11 $ 26.23 $ 2.40 $ 11.30 $ (12.44) $ (25.33) $ $ $ $ $ en $ $ $ WACC 9.50% = Cost of equity = 10.23% Long run growth rate = 2.8% Number of shares of stock = 42 M The number of days of cash required to be held is 35 The fair value of debt is $1,092.33 The amount of cash required the last year of actuals was $109.34 There is no interest income. There is no preferred stock. They have no non-controlling interest in another firm. There are no financial assets in the capital structure.