Use the information provided on the homework handout to answer the below questions.$$Be sure to follow the question instructions as to how best to enter your response.

Do note that while all numbers $($Account balances and Shares Outstanding$)$ are listed as $thousands, you do NOT need to make any changes to input your answers.$$Example: suppose Long Term Debt was listed as $500$ which would represent $500,000$debt $($due to $thousands$).$If the question was to ask for the amount of debt, you would answer $500.$

$1)$ Compute the Cost of Equity for XYZ Inc.

$2)$ Compute the WEIGHTED AVERAGE after$-$tax cost of debt $($short term and long term combined$)$ for XYZ Inc.

$3)$ Compute the Weights for Short Term Debt, Long Term Debt and Equity.

$4)$ Compute the Weighted Average Cost of Capital

$5)$ Calculate the Free Cash Flow for the next three years

$6)$ Use the Free Cash Flow Method to compute the value of XYZ Inc.

$7)$ Based on the Free Cash Flow Valuation, compute the Value of XYZ$$s equity and the estimated price per share.

You are given the following information about Company XYZ below from $2019$:

Additionally, you believe that EBIT will grow at a rate of $5\%$ over the next $3$ years, N$.$O$.$W$.$C$.$ will need

to grow $4\%$ for the next three years and Net Fixed Assets will grow at $2\%$ for the next three years.

Afterwards, you believe Free Cash Flow to grow at a rate of $2\%$ per year. XYZ Inc. has a Beta estimated

to be $1\mathrm{.}3,$ the market risk premium is estimated to be $8\%$ p$.$a$.$ and the risk free rate is estimated to be $1\%$

p$.$a$.$