***PLEASE SHOW ALL CALCULATIONS / FUNCTIONS USED ***

A B E F G H I 1 Below are a target's free cash flow projections and it's projections of interest expense from debt. The target's expect constant growth rate is 6%. It's unlevered cost of capital is 11.56%. The tax rate is 40%. Use this information to calculate 1) The unlevered value of the target 2) the value of the tax savings from interest expense and 3) the value of the target's operations. 2 0.4 0.1156 3 tax rate 4 unlevered cost of capital constant growth rate for terminal cash 5 flows 0.06 0 6 7 YEAR 8 FCF 9 interest expense 1 11.7 5 2 10.5 6.5 3 16.5 6.5 4 20.7 7 5 21.94 8.16 A B E F G H I 1 Below are a target's free cash flow projections and it's projections of interest expense from debt. The target's expect constant growth rate is 6%. It's unlevered cost of capital is 11.56%. The tax rate is 40%. Use this information to calculate 1) The unlevered value of the target 2) the value of the tax savings from interest expense and 3) the value of the target's operations. 2 0.4 0.1156 3 tax rate 4 unlevered cost of capital constant growth rate for terminal cash 5 flows 0.06 0 6 7 YEAR 8 FCF 9 interest expense 1 11.7 5 2 10.5 6.5 3 16.5 6.5 4 20.7 7 5 21.94 8.16