End$-$of$-$Chapter Assignments: Ch$\mathrm{.}4$ Your organization, a mid$-$sized firm specializing in workforce solutions and personnel management, is exploring opportunities to branch into complementary sectors$.$ As part of this strategy, the company is evaluating the potential acquisition of QuickHire Services, a staffing agency that provides temporary technical talent, such as data entry specialists and software developers, to companies during periods of increased demand. In addition, your firm is considering buying out Hargrave & Benton $($H&B$),$ a privately owned enterprise held equally by two partners, each possessing $5$ million shares. H&B currently generates $$24$ million in annual free cash flow, which is projected to grow at a stable rate of $5\%$ per year. According to H&B$$s latest financial disclosures, the company holds $$100$ million in short$-$term financial assets, owes $$200$ million in outstanding debt, and has $$50$ million in preferred equity. The firm's weighted average cost of capital $($WACC$)$ stands at $11\%.$ Respond to the following questions based on this scenario.

$1.$ Use H&B$$s data and the free cash flow valuation model to answer the following questions. What is its estimated value of operations? $(2$ pts$)$

$2.$ What is its estimated total corporate value? $($This is the entity value.$)(2$ pts$)$

$3.$ What is its estimated intrinsic value of equity? $(2$ pts$)$

$4.$ What is its estimated intrinsic stock price per share? $(2$ pts$)5.$ You have just learned that H&B has undertaken a major expansion that will change its expected free cash flows to $$$$10$ million in $1$ year, $$20$ million in $2$ years, and $$35$ million in $3$ years. After $3$ years, free cash flow will grow at a rate of $5\%.$ No new debt or preferred stock was added; the investment was financed by equity from the owners. Assume the WACC is unchanged at $11\%$ and that there are still $10$ million shares of stock outstanding. What is the company$$s horizon value $($i$.$e$.,$ its value of operations at Year $3)?$ What is its current value of operations $($i$.$e$.,$ at Time $0)?(4$ pts$)$

$6.$ What is its estimated intrinsic value of equity on a price per share basis? $(3$ pts$)$