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The following table shows projected free cash flows for the next three years for Care4UMed Corp., a company producing portable oxygen machines. Free Cash Flow

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The following table shows projected free cash flows for the next three years for Care4UMed Corp., a company producing portable oxygen machines. Free Cash Flow Year (Millions of dollars) 1 24.60 2 26.57 3 28.70 After the three year period, Care4UMed is expected to grow at a constant rate of 8% and its WACC is 13%. Care Med has $15 million of debt and $210 million shares of stock outstanding. According to the video, what is the formula for Care4UMed's horizon value? FCF HV; = (WACC) FOR HV, WACE- FCF HVA = 1 FC HV; = 1+ ACC Care4UMed's horizon value is million. According to the video, what is the formula for the firm's value today? O Vo = HY (1+WACO Vo = FCF FCF + (1+WACC) (1 WACO FCF FCF O Vo = + + (1+WACC) (WACC) FCF FCF OV= (WACC) (+WACCP HV (I+WACC) FCF (1+WACC) FCF (1+WACC) FCF (1+WACC) + HV, HV (WACC Care4UMed's value today is million According to the video, the value of equity is found as Care4UMed's equity is million According to the video, the price per share is found as Care4UMed's the price per share is The following table shows projected free cash flows for the next three years for Care4UMed Corp., a company producing portable oxygen machines. Free Cash Flow Year (Millions of dollars) 1 24.60 2 26.57 3 28.70 After the three year period, Care4UMed is expected to grow at a constant rate of 8% and its WACC is 13%. Care Med has $15 million of debt and $210 million shares of stock outstanding. According to the video, what is the formula for Care4UMed's horizon value? FCF HV; = (WACC) FOR HV, WACE- FCF HVA = 1 FC HV; = 1+ ACC Care4UMed's horizon value is million. According to the video, what is the formula for the firm's value today? O Vo = HY (1+WACO Vo = FCF FCF + (1+WACC) (1 WACO FCF FCF O Vo = + + (1+WACC) (WACC) FCF FCF OV= (WACC) (+WACCP HV (I+WACC) FCF (1+WACC) FCF (1+WACC) FCF (1+WACC) + HV, HV (WACC Care4UMed's value today is million According to the video, the value of equity is found as Care4UMed's equity is million According to the video, the price per share is found as Care4UMed's the price per share is

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