You have been asked to value Delta Corp and have come up with the following inputs:

	Delta 2019
Revenues	$1,500
COGS (w/o Depreciation) as % of Revenue	50%
Depreciation	$40.00
Tax Rate	35.00%
Capital Expenditure	$60.00
Working Capital (as % of Revenue)	30.00%
Beta during the high growth period	1.50
Expected Growth Rate in Revenues &EBIT during the high growth period	30.00%
Expected Period of High Growth	3 years
Growth rate After High-Growth Period	5.00%
Beta After High-Growth Period	1.20

Capital expenditure will be offset by depreciation after the high-growth period. No debt outstanding. The Treasury bond rate is 8% and the market risk premium (MRP) is 5.5%.

Required:

1) What is your estimate to the appropriate discount rates during the high-growth period and stable growth period?

2) What is your estimate to the terminal value (TV) for the firm (at the end of the third year)?

3) What is your estimate to the value of the firm, using the FCFF model?