Question: i need 1-3 please Corporate Valuation Method: Today is December 30, 2018. The following information applies to Harrison Airlines: After-tax operating income (EBIT(1 -T)] for
Corporate Valuation Method: Today is December 30, 2018. The following information applies to Harrison Airlines: After-tax operating income (EBIT(1 -T)] for 2019 is expected to be $500 million The depreciation expense for 2019 is expected to be $110 million The capital expenditures for 2019 are expected to be $250 million No change is expected in net working capital The free cash flow is expected to grow at a constant rate of 5.0% per year The required return on equity is 12.0% The WACC is 8.0% The firm has $120 million of non-operating assets. The market value of the company's debt is $4.25 billion 250 million shares of stock are outstanding What is the firm's FCF? QUESTION 2 Corporate Valuation Method (Harrison Airlines): What is the firm's horizon value (HV)? QUESTION 3 Corporate Valuation Method (Harrison Airlines): What is the firm's total market value
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