Based on the free cash flow forecast provided in Appendix $3$ of the case,

and assuming a range of $9-11\%$ WACC and $1-3\%$ terminal value growth

rate, what is the range of values for Saito Solar?

$(6)$ Strategically, do you think Mr$.$ Saito and his partners should sell the

firm at this time?

Case $5$: Ocean Carriers

Assume that Ocean Carriers uses a $9\%$ discount rate.

$(1)$ Do you expect daily spot hire rates to increase or decrease next year?

$(2)$ What factors drive average daily hire rates?

$(3)$ How would you characterize the long$-$term prospects of the capesize dry

bulk industry?

$(4)$ Should Ms$.$ Linn Purchase the $$39$M capsize? Make $2$ different

assumptions. First, assume that Ocean Carriers is a U$.$S$.$ firm subject to

$35\%$ taxation. Second, assume that Ocean Carriers is located in Hong

Kong, where owners of Hong Kong ships are not required to pay any

tax on profits made overseas and are also exempted from paying any tax

on profit made on cargo uplifted from Hong Kong.

$(5)$ What do you think of the company$$s policy of not operating ships over

$15$ years old?