Note ( answer all questions ) to get thumbs up

Q5: Consider the following cash flows of a project for Tokyo Rubber Company. Assume the cost of capital for both projects is 10 Percent and the reinvestment rate is 12%

Time	Project A
0	-14000
1	4100
2	9000
3	-3500
4	3000

Calculate the modified internal rate of return for this non-conventional cash flow project.

Q7: A company has the following free cash flow to the firm (FCFF) for the upcoming 5 years. 6

	Year 1	Year 2	Year 3	Year 4	Year 5
FCFF (in mn)	11	13	14.5	16	18

The FCFF is expected to grow by 6% to infinity from 6^th year onwards to infinity.

the required rate of return from the companys stock is 12%

The company has debt of $5 mn and cash balance of $6 mn. The no. of common stock outstanding for the company is 10 mn.

Calculate

1. enterprise value,
2. equity value and

equity value per share or intrinsic value and recommend regarding the company if the market price of the company is Tk 20 per share