The Company XYZ hired you to perform its valuation using DCF Method (discounted cash flow method). You collected the data from Accounting Department as follow:

- The next year revenue are expected to equal 340.

- Expect to grow at rate 5% annually.

- The Company inquire a variable cost of 3%

- The company requires fixed annual cost of 50.

- The current capital company is divided 40% Equity at cost.

- The systemic risk at 1.6 and risk with debt of 0.7.

- The Corporate tax is 20%.

- The Treasury bond interest rate coupon rate is 4%.

- The market index is annual return is 12%.

- The return with invested capital is expected to be 25% (doesnt change with any new project).

Calculate the following:

A) Calculate the cash flows of company XYZ for next 5 years.

B) Find the annual growth rate of that Cash Flows.

C) Find the tax free cost of capital.

D) Assume that Company Cash flows will increase perpetually at same growth rate that you found in (B). Give an approximation of Value of Company XYZ.