Problemi (20 points) Let in year 2010, Value Line projects the following years 2011-2015 as follows: Year me projects the following FCPFs for the company ABC for the ICF (5) mill 2011 2012 2013 2014 2015 12822 14356 ne value line projects that ABC is in high growth from the year 2011 till 2015 will reach a stable growth phase at end of the year 2015. The risk free rate at the year 2010 is 6516 market risk premium is 5.5% d both remains stable. Corporate tax rate is 36%. The following parameters are estimated for the high growth phases Length of high growth phase-5 years ABC stock Beta-1.8 Debt-to-equity ratio = 0.35 Cost of Debt-8.5% (annual interest rate) The following parameters are estimated for the stable growth phase: Expected growth rate in FCFF -6% (remains stable) ABC stock Beta-1.5 Debt-to-equity ratio - 0.45 Cost of Debt = 9.5% (annual interest rate) A. Compute the value of WACC at the high growth phase. (5 points) B.Ge C. What is the terminal value of the stock at the end of year 2015? What is the estimate intrinsie value of the firm ABC in year 2010 following the FCFF approach? (10 points)