Problem: 23 Selected data for the Derby Corporation are shown below. Use the data to answer the following questi INPUTS (In millions) Year Projected 1 2 3 Free cash ow -$20.0 $20.0 $80.0 Marketable Securities Notes payable Long-term bonds Preferred stock WACC Number of shares of stock a. Calculate the estimated horizon value (i.e., the value of operations at the end of the forecast period after the Year-4 free cash ow). Plus value of narketable securities $40.00 Total value of company $ 1,72 1.84 Less value of debt $400.00 Less value of preferred stock $50.00 Estimated value of common equity $ 1,271.84 Divided by number of shares $40.00 Price per share 1- - .' 9 _ Pralected : 1 2 3 Free cash flow -$20.0 $20.0 $80.0 Long-term constant growth in FCF Horizon value