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You are analyzing the firm Terumo Corp. The firm's fiscal year ended 30 September 2018, and you must estimate Terumo Corp's value as of 1

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You are analyzing the firm Terumo Corp. The firm's fiscal year ended 30 September 2018, and you must estimate Terumo Corp's value as of 1 October. You have the following actual and forecast year- end free cash flows: FCFF(2017) FCFF(2018) FCFF(2019) FCFF(2020) FCFF(2021) 140,000 172,000 172,000 172,000 172,000 In the past Terumo Corp has used equal parts debt and equity, and you believe they will continue to do so. In addition, you have estimated that the terminal growth rate should be 2%, the PE is 35, the beta is 1.18, the cost of equity is 16%, the cost of debt is 12%, and the risk-free rate is 5%, and the tax rate is 35%. What is the value of the firm? A. show the cash-flow timeline, B. Label all interim answers, C. Final

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