The Sanford Software (SS) Co. reported $320 million in earnings before interest, taxes, depreciation and amortization (EBITDA) on revenues of $800 million last year. EBITDA as a percent of sales revenue is expected to remain constant for the next five years. The year-on-year (Y.o.Y) growth rates in sales revenue are projected are as follows Year Y.o.Y For the year just ended, investment in fixed assets was S120 million. Fixed assets are expected to be 20% of the projected sales revenue for the next five years. Depreciation will be charged at 20% per year on the 25% 20% 12.5% 10% 6% total fixed assets For the year just ended, current assets (Inventory and account receivables) and current liabilities (accrued expenses and account payables) were $372 million and S262 million respectively. Net working capital (NWC) is projected to be 14% of sales revenue for the next five years. The annual marginal corporate tax rate will remain at 30%. After year 5, the free cash flow to the firm (FCFF) will growat 4% per year indefinitely. The WACCis 1396. a) Derive the FCFF for the first 5 years b) Compute the terminal value at end of year 5 and then the total value of the firm c) Suppose the firm has 10% preferred stock capital with S200 par value. The firm also has 150 million. 30% fully amortizing loan payable within 5 years. The cost of equity is 10% Compute the Free cash flows to equity (FCFE) (Hint compute the annual interest and principal for the loan)