Start with the partial model in the file Ch08 P25 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
	0	1	2	3	4
Free cash flow		-$15.0	$15.0	$60.0	$63.6
Marketable securities	$	70
Notes payable	$	160
Long-term bonds	$	480
Preferred stock	$	80
WACC		11.00	%
Number of shares of stock		20

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 Ch08 P25 Build a Model-feed60.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 $1.23 million should be entered as 1.23, not 1,230,000. Round your answer to two decimal places.

A) $ ______?

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 $1.23 million should be entered as 1.23, not 1,230,000. Round your answers to two decimal places.

Present value of HV	B) $ ______?
Present value of FCF	C) $ ______?
Value of operations	D) $ ______?

Calculate the estimated Year-0 price per share of common equity. Round your answer to the nearest cent.

E) $ ______?