You are given the following information about Company XYZ below from :

$ thousands

AP

Accruals

Notes Payable

Long Term Debt

Common Stock

Retained Earnings

# Shares Outstanding

thousands

Current Market Price $

EBIT

NOWC

Net Fixed Assets

Bond Info

Bond Type Time to Maturity Face Outstanding Coupon Rate Price

Years $ thousandsPaid Annual

Bond A Short Term $

Bond B Long Term $

Bond C Long Term $

Tax Rate

Additionally, you believe that EBIT will grow at a rate of over the next years, NOWC will need to grow for the next three years and Net Fixed Assets will grow at for the next three years. Afterwards, you believe Free Cash Flow to grow at a rate of per year. XYZ Inc. has a Beta estimated to be the market risk premium is estimated to be pa and the risk free rate is estimated to be pa

Answer the following questions:

Compute the Cost of Equity for XYZ Inc.

Compute the WEIGHTED AVERAGE aftertax cost of debt short term and long term combined for XYZ Inc.

Compute the Weights for Short Term Debt, Long Term Debt and Equity. Equity

Compute the Weighted Average Cost of Capital

Calculate the Free Cash Flow for the next three years

Use the Free Cash Flow Method to compute the value of XYZ Inc.

Based on the Free Cash Flow Valuation, compute the Value of XYZs equity and the estimated price per share.