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5. Wall Inc. forecasts that it will have the free cash flows (in millions) shown below....

5. Wall Inc. forecasts that it will have the free cash flows (in millions) shown below. The weighted average cost of capital is 10% and the free cash flows are expected to continue to grow at 8.2 percent after Year 3 indefinitely. Year 1 2 3 Free cash flow $10.00 -$48.00 $150.50

A. Calculate the firm’s FCF for year 4.

B. Calculate the Horizon value in year 3.

C. Assuming a $150 million for the company’s total market value of debt and preferred stock, and 20 million shares outstanding calculate the CURRENT intrinsic value per share. Show all your work.

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