The following information is given about a corporation. All figures are in million dollars.

Sales = 900

Long term debt = 500. The current yield to maturity is 8.8 percent. The coupon rate is zero. The maturity is 10 years.

Find Capital expenditures and the change in working capital.

The equity Beta of this company is =1.4

ROE = 15 %,

Tax rate = 30%

Growth rate of the free cash flow = 120 %, 50 %, and 5% thereafter.

Risk-free rate = 4%

Market risk premium = 8 %

	2009	2010			2009	2010
Current Assets	200	300		Current liabilities	100	150
Net Fixed Assets	500	600		Long-term Debt	500	500
				Equity	100	250
Total Assets	700	900		SE and liabilities	700	900

	2009	2010
Sales	800	900
COGS	500	500
Depreciation	100	100
Tax rate 30%

Using the information in the tables, calculate the free cash flow and weighted average cost of capital (WACC) to find the value of this corporation at the end of year 2010. Assume that debt ratio, yield to maturity, risk-free rate, market risk premium, beta and other relevant ratios will stay the same for the foreseeable future