x=4

2. Your company would like to acquire Pharma Company. As the head of the acquisition team, please calculate the followings for Pharma by using the information below. Following free cash flows (FCF) are forecasted for the next 4 years of the Pharma Company. FCF is expected to grow at a constant x% rate after 4 years and WACC of the Pharma is 1x%. 1. year -$20 million 2. year $30 million 3. year -$50 million 4. year $7x million a. What is Pharma's horizon (terminal) value? b. Calculate the firm value of the Pharma Company today. c. If Pharma has $x0 million of debt and x million shares outstanding. What is your estimate of current price per share