CAN YOU DO STEP BY STEP ON HOW TO GET TO THE ANSWER ONCE I DID MY CALCULATION MY VALUE OF EQUITY WAS $1683,88$ AND VALUE PER SHARE BECAME $3,167(1583,88/$ BOOK VALUE EQUITY $500)$ OR WAS I HOING TO DO $(1583,88/$ OUSTANDING SHARES $150)$ IS IT RIGHT OR WRONG AND CAN YOU SHOW HOW TO SOLVE THIS STEP BY STPE IN A EASY WAY TO FOLLOW AND IF YOU USE EXCEL CAN YOU POST THE SPREED SHEET TOO $.$QUESTION $2.$

Sainte$-$Clotilde Jouet SA is a publicly traded company and you have been provided the

following information on its expected revenues and after$-$tax operating income $($in $$

millions$),$ each year for the next $5$ years:

The company currently has $150$ million shares trading at $\frac{10}{?}$ share $($book value of

equity$=500$ million$).$ The company also had $400$ million in debt outstanding $($book and

market value$)$ and $300$ million in cash. The cost of capital for the firm is expected to be $12\%$

for the next $5$ years and drop to $8\%$ thereafter.

a$.$ Assuming that the firm's return on invested capital stays at its current level for the next $5$

years, estimate the free cash flow to the firm each year for the next five years.

b$.$ After year $5,$ you expect the firm's return on invested capital to halve $($from current levels$)$

and the expected growth rate to drop to $2\%$ a year in perpetuity. Estimate the terminal

value at the end of year $5.$

c$.$ Estimate the value of equity per share today.