Use B&Ms data and the free cash flow valuation model to answer the following questions. (1) What is the estimated value of operations? (2) What is the estimated total corporate value? (This is the entity value) (3) What is its estimated intrinsic value of equity? (4) What is the estimated intrinsic stock price per share?

Your employer, a mid-sized human resources management company, is considering expan sion into related fields, including the acquisition of Temp Force Company, an employment agency that supplies word processor operators and computer programmers to businesses with temporary heavy workloads. Your employer is also considering the purchase of Bigger staff & McDonald (B&M) 5 million shares of stock. B&M currently has free cash flow of $24 million, which is expected to grow at a constant rate of 5%. B&M's financial statements report short-term investments of $100 million, debt of $200 million, and preferred stock of $50 million. B&M's weighted average cost of capital (WACC) is 11%. Answer the following questions. privately held company owned by two friends, each with a