Start with the partial model in the file Ch08 P22 Build a Model xlsx on the textbook's web site selected data for the derby corporation are shown below Use the Data to answer the following questions INPUTS (In Millions) Year Current Projected 0 1 2 3 4 Free cash flow $20 0 $20 0 $80 0 $84 0 Marketable securities $40 Notes payable $100 Long term bonds $300 Preferred stock $50 WACC 9 00 Number of shares of stock 40 a Calculate the estimated horizon value (i e , the value of the operations at the end of the forecast period immediately after the Year 4 free cash flow) b Calculate the present value of the horizon value, the present value of the free cash flows, and the estimated Year 0 value of operations c Caclulate the estimated Year 0 price per share of common equity

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Question: Start with the partial model in the file Ch08 P22 Build a Model.xlsx on the textbook's web site. selected data for the derby corporation are

Start with the partial model in the file Ch08 P22 Build a Model.xlsx on the textbook's web site. selected data for the derby corporation are shown below. Use the Data to answer the following questions.

INPUTS (In Millions)	Year
	Current	Projected
	0	1	2	3	4
Free cash flow		-$20.0	$20.0	$80.0	$84.0
Marketable securities	$40
Notes payable	$100
Long-term bonds	$300
Preferred stock	$50
WACC	9.00%
Number of shares of stock	40

a. Calculate the estimated horizon value (i.e., the value of the operations at the end of the forecast period immediately after the Year-4 free cash flow).

b. Calculate the present value of the horizon value, the present value of the free cash flows, and the estimated Year-0 value of operations.

c. Caclulate the estimated Year-0 price per share of common equity.

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