Walters inc. has an anticipated next-year free cash flow (FCF) of $10 million. This cash flow is anticipated to grow at an annual rate of 5%.

a. if the FCFs occur year-end and the WACC of Walters is 15%, what is the enterprise value of the company?

b. How would ypour answer change if the cash flows occur in mid-year?

Next year's FCF Growth rate WACC WALTERS INC. 10,000,000 5% 15% Section a. Enterprise value 100,000,000 Section b. Mid-year