After completing financial statement analysis, CEO request CFO to estimate the Company's Cost of Capital in terms of weight average cost of capital (WACC). CEO has a target capital structure that the ratio of debt, preferred stock, and common stock is 35%, 35%, and 30% respectively. In this respect, CFO asks you to calculate weighted average cost of capital (WACC). The bankers expect the Company to pay interest for 6% per year and tax rate equals 30% of taxable income. Preferred stockholders expect dividend of 7% per year. However, common shareholders request the Company to pay dividend based on CAPM approach. In turn, CFO collects market data and finds out that 5-year government bond (risk-free) yields a return of 5%, Thailand market beta is 1.2 and the firm's risk premium equals 15% (5 Marks).

In October 2021, James, the owner of venture capital, is interested in evaluating the value of the Company and will propose a strategic acquisition proposal. James's financial advisor projects the free cash flow for the future 10 years of the Company as follows: 10,000, 12,500, 13,750, 14,500, 16,000, 18,000, 20,000, 22,500, 25,000, and 30,000 (i.e. FCF 1 - FCF 10). James's team adopts WACC calculated by you. What is corporate value (V_OP) of the Company? (30 Marks)