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The company financials are given below: Net income 200m Depreciation expense 72m Interest expense 120m Increase in net working capital investment 32m Increase in fixed

The company financials are given below:

Net income

200m

Depreciation expense

72m

Interest expense

120m

Increase in net working capital investment

32m

Increase in fixed capital investment

136m

Market value of debt

1,440m

Cost of debt

8.5%

Cost of equity

14%

Tax rate

20%

Constant growth rate of free cash flow (forecasted)

4% (per year)

Capital Structure:

Debt

40%

Equity

60%

Number of shares outstanding

20,000,000

Find the following:

1. Free cash flow to firm (actual):

2.Free cash flow to firm (next year forecast):

3. The weighted average cost of capital:

4.Value of the company (using FCF capitalization approach):

5.Value of equity:

6.Intrinsic value per share:

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