Use the forecast below to find this stock's value. Expected constant growth 'g' for Free Cash Flow is ---> DEBT = --> $ 5,000 WACC --> Assumes tax rate is -->> 0.22 2.7% 7.00% B D S Million EBIT EBIT (L-TxR) Depreciation F Change in Capital Work Capital Spending H Free Cash Flow Firm FORECAST YEAR Pres. Value FCF Firm Pres. Value Factors 1 $815 $636 $60 $25 $135 2 $865 $675 $70 $30 $150 3 $905 $970 $706 $757 $75 $90 $40 $45 $165 $180 4 TERMINAL VALUE PROJECTION 5 Assume all future Free Cash Flow to Firm grow at contant- 0.027 Where 'g' is projected constant future growth rate of ECF, assumed in this prob at >> 0.027 SUM OF PVs OF PROJECTED FCF TO TestCo- millions SOLUTION OF VALUE OF TestCo's EQUITY - based on residual CF to shareholders millions 90