We have collected the following information from a firms balance sheet. It is forecasted that starting from next year (year 1), its FCF will remain constant forever. Its forecasted EBIT in year 1 is $100, corporate income tax rate is 30%.

(1) What is this firms FCF in Year-1? Your answer: $[a] Please type in an integer only. For example, if your answer is $100.89, then type in 100, not $100, or 100.9.

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(2) If its WACC is 10%, what is its value of operations? Your answer: $[b] Please type in an integer only.

Fixed assets and working capital Latest year 0 90 Forecast 1 110 40 Gross fixed assets Less accumulated depreciation Net fixed assets Depreciation Working capital 70 30 60 4 11 14 13