You are an analyst at investment bank G&S, and you are asked to evaluate the stocks of Savo Corp at the end of fiscal year 2021. The following information is provided (In Excel): Valuation DCF 2021 Question-1.xlsx = . The 10-year Treasury bond yield is 2%, the historical market risk premium is 4.2% After 2024, the firm's FCFF is expected to grow by 2% a year forever. 1). What is your estimated WACC of Savo Corp? 2). Please forecast the firm's FCFF for 2022-2024 period. Make sure to show your steps. 3). Using the Discount Cash Flow model, what is your estimated stock price per share for Savo Corp? What is your recommendation to clients (buy/hold/sell)? Briefly explain your answer. Savo Corp. Related Info Stock Beta Average borrowing rate for debt Book value of Debt ($MM) Market Value of Debt ($MM) Stock price/share at year end # of shares outstanding (MM) Marginal Tax Rate 2021 2 6% 86 $120 $28 10 22% 2020 Income Statement Sales (SMM) Cost of Goods Sold Gross Profit Selling, Gen. & Admin Exp. Operating Profit Interest Exp. Pretax Income Tax Expense Net Income 220 156 64 21.5 42.5 5.5 37 11.3 25.7 2021 245 161.5 83.5 22.7 60.8 5.8 55 10.2 44.8 Balance Sheet Related Info Net Operating Assets ($MM) Book value of Equity ($MM) 2020 208 140 2021 210 145 Forecast Sales Growth Rate NOPAT as % of Sales Sales/NOA Turnover Explicit Forecast Period 2022E 2023E 2024E 5% 4% 3% Same as 2021 Same as 2021