The companys financials are given in the table below: Before-tax cost of debt 6% Cost of equity 12% Corporate income tax rate 30% Target capital structure: Debt: 40%. Equity: 60% Current free cash flow $25,000 Long-term constant growth rate in free cash flow 4.5%

1. Determine the weighted average cost of capital.

2. Using the cash flow capitalization approach, estimate the company value.