You want to determine the value of the firm using the free cash flow to the firm model. You believe that the firm's FCFF will grow at 27% for one year, 14% for two years and 3% after. Capital expenditures, depreciation, and working capital are all expected to increase proportionately with FCF The targeted proportion of common stock, debt and preferred stock is respectively 78%, 17%, and 5% Taxes are 40% al Calculate the amount of FCFF for the year 2012. Assume that there is no change in other assets. b/ Calculate the value of the firm based on this threage FCFF model c/ Calculate the market value of the firm J/ What should be the price of the stock? We assume that the number of preferred stocks is 40 million and the price of the preferred stock is $56. e/ What is the expected dividend yield? f/ What is the sum of the dividend yield and the capital gain? Question: What is one of the characteristics of the Austrian Business cycle that help us to understand the specific cyclicality of different industries? You want to determine the value of the firm using the free cash flow to the firm model. You believe that the firm's FCFF will grow at 27% for one year, 14% for two years and 3% after. Capital expenditures, depreciation, and working capital are all expected to increase proportionately with FCF The targeted proportion of common stock, debt and preferred stock is respectively 78%, 17%, and 5% Taxes are 40% al Calculate the amount of FCFF for the year 2012. Assume that there is no change in other assets. b/ Calculate the value of the firm based on this threage FCFF model c/ Calculate the market value of the firm J/ What should be the price of the stock? We assume that the number of preferred stocks is 40 million and the price of the preferred stock is $56. e/ What is the expected dividend yield? f/ What is the sum of the dividend yield and the capital gain? Question: What is one of the characteristics of the Austrian Business cycle that help us to understand the specific cyclicality of different industries