Question: 2 4 . ( 1 4 points ) You have estimated the free cash flows for a firm for the next three years as

24.(14 points) You have estimated the free cash flows for a firm for the next three years as \(\$ 120\) million, \(\$ 140\) million, and \(\$ 160\) million. You expect that after that free cash flow will grow indefinitely at a rate of \(5\%\). The firm's weighted average cost of capital is \(13.5\%\). The firm has \(\$ 200\) million debt, \(\$ 550\) million excess cash, and 12 million shares outstanding. (a) What is the estimated enterprise value of the firm? (b) What is the estimated market capitalization? (c) What is your estimate of the share price? (d) If the firm's cost of debt \(\left(r_{D}\right)\) is \(4.5\%\) and the tax rate is \(30\%\), what is the firm's cost of equity capital?
2 4 . ( 1 4 points ) You have estimated the free

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