Module 14 Problem - 30 Points Valuation of Common Equity (DCF Model) Slanco inc. plans to become public soon. The firm has $1,644,052 in preferred equity and the market value of its outstanding debt equals $3,039,264. The WACC for this firm is estimated to be 10.79%. For this example assume the current assets are zero. Use the DCF valuation model with the expected FCFs shown below; year 1 represents one year from today and so on. ThJ company expects to grow at a 2.9% constant rate after Year 5 . Aounding to the nearest penny, what is the value of common equity? Note: You have two sets of cash flows here. The steps for calculating Comman Equity are in the text book on poges 339-343. It is also discussed in the Module 12 "Calculating the Enterprise Value, the Value of the Firm, and the Valve of Common Equity". You will need to compute the PV of both sets. of cash flows, then odd the two PVs together to get the Enterprise Value of the Firm. Avineotert rachlavie Note: this is very sular to the calulation of the Variable Growth Oividend Model that you calculated in Module 10 This is just an example no calculations required. Copy of problem from Module 10 -you will need to be able to do this on the final eram Non-Constant Growth Stock