start with the partial model in the file Ch$08$ P$25$ Build a Model.xlsx$.$ Selected data for the Derby Corporation are shown here. Use the data to answer the questions.

INPUTS $($In Millions$)$ Year

Current Projected

$01234$

Free cash flow $-$$$25\mathrm{.}0$ $$25\mathrm{.}0$ $$110\mathrm{.}0$ $$118\mathrm{.}8$

Marketable securities $ $40$

Notes payable $ $100$

Long$-$term bonds $ $400$

Preferred stock $ $50$

WACC $13\mathrm{.}00\%$

Number of shares of stock $25$

The data has been collected in the Microsoft Excel file below. Download the spreadsheet and perform the required analysis to answer the questions below. Do not round intermediate calculations.

Download spreadsheet Ch$08$ P$25$ Build a Model$-$ca$6$d$47.$xlsx

Calculate the estimated horizon value $($i$.$e$.,$ the value of operations at the end of the forecast period immediately after the Year$-4$ free cash flow$).$ Assume growth becomes constant after Year $3.$ Enter your answer in millions. For example, an answer of $$1\mathrm{.}23$ million should be entered as $1\mathrm{.}23,$ not $1,230,000.$ Round your answer to two decimal places.

$ fill in the blank $2$

$2566\mathrm{.}08$

million

Calculate the present value of the horizon value, the present value of the free cash flows, and the estimated Year$-0$ value of operations. Enter your answers in millions. For example, an answer of $$1\mathrm{.}23$ million should be entered as $1\mathrm{.}23,$ not $1,230,000.$ Round your answers to two decimal places.

Present value of HV $ fill in the blank $3$

$1573\mathrm{.}82$

million

Present value of FCF fill in the blank $4$

$146\mathrm{.}55$

million

Value of operations $ fill in the blank $5$

$1720\mathrm{.}38$ million