Chapter 21 Problem 8Can you please help me build my model Thank You

Solution Chapter: Problem: 21 8 Start with the partial model in the file Ch21 P08 Build a Model.xlsx on the textbook's Web site. Kasperov Corporation has an unlevered cost of equity of 12% and is taxed at a 40% rate. The 4-year forecasts of free cash flow and interest expenses are shown in the following table; free cash flow and interest expenses are expected to grow at a 5% rate after Year 4. Using the compressed APV model, answer the following questions. INPUTS (In millions) Year Free cash flow Interest expense Projected 1 $200.0 $100.0 Long-term growth rate Tax rate Unlevered cost of equity 2 $280.0 $120.0 3 $320.0 $120.0 4 $340.0 $140.0 5% 40% 12.00% a. Calculate the estimated horizon value of unlevered operations at Year 4 (i.e., immediately after the Year-4 free cash flow). Current 1 Free cash flow Horizon unlevered value of operations $200.0 Projected 2 $280.0 3 $320.0 b. Calculate the current value of unlevered operations. Current value of unlevered operations a. Calculate the estimated horizon value of the tax shield at Year 4 (i.e., immediately after the Year-4 free cash flow). Current Interest expense Tax savings Horizon unlevered value of operations d. Calculate the current value of the tax shield. Current value of unlevered operations d. Calculate the current total value. Unlevered value of operations Value of tax shield Total value 1 $100.0 $40.0 Projected 2 3 $120.0 $120.0 $48.0 $48.0 7/16/2015 Web site. Kasperov -year forecasts of free interest expenses are r the following questions. ediately after the Year-4 cted 4 $340.0 after the Year-4 free cash cted 4 $140.0 $56.0