USE X $=5$ FOR EVERY X

following information. The company can borrow long term at $15\%$ and the tax rate is $40\%.$ Market value

of debt is $$150000000$ and the market value of equity is $$250000000.$ The $10-$year T$-$bond rate is $6\%$

and the historical risk premium is $4\%.$ Beta of the company is estimated as $1\mathrm{.}5$ and the the growth rate

of the company is $5\%.$ The company has $5$ million shares. FCFFs for the next three years are given

below. $($Equity market is not in equilibrium.$)$

FCF $3=15$ M

a$.$ Calculate the WACC. $(15$ pts$)$

b$.$ Calculate the firm value of the company. $(15pts)$

c$.$ Calculate the PPS of the company. $(5$ pts$)$