QUESTION 3 2a what is the enterprise value? a. Walters, Inc. has an anticipated next-year FCF of $10 million. This cash flow is anticipated to grow at an annual rate of 5%. If the FCFs occur at year end and if the WACC of Walters is 15%, what is the enterprise value of the company? QUESTION 4 3a what is the share price? a. Houda Motors has just announced results that show that the FCF for the past year is $23 mil- lion. An experienced analyst believes that the growth rate of the FCF for the next 10 years will be 25% per year and that after 10 years the growth rate will be 7% annually. Houda's WACC is! 18%, and the company has 100 million shares outstanding. Value the shares assuming that the FCFs occur at year end. Houda has no debt and no excess cash reserves. QUESTIONS 8. Hectoritis Corp. currently has an FCF of $13 million. A reputable analyst estimates that MacBook Air 100000000 QUESTION 4 3a what is the share price? a. Houda Motors has just announced results that show that the FCF for the past year is $23 mil- lion. An experienced analyst believes that the growth rate of the FCF for the next 10 years will be 25% per year and that after 10 years the growth rate will be 7% annually. Houda's WACC is 18%, and the company has 100 million shares outstanding. Value the shares assuming that the FCFs occur at year end. Houda has no debt and no excess cash reserves. QUESTIONS 8a what is WACC? 8. Hectoritis Corp. currently has an FCF of $13 million. A reputable analyst estimates that this FCF is anticipated to increase by 12% per year for the next 5 years. The analyst esti- mates that at the end of 5 years the company's terminal value will be based on the years FCF and a long-term FCF growth rate of 4%. Suppose the Hectoritis = 1.5, the 7, 3%, the market risk premium EM-- = 14%, and Hectoritis has 8 million shares outstanding. How should the analyst value the shares of the company? Assume all cash flows occur at year end. MacBook Air