Use the Supernormal then Constant Growth Model and the data below to find this companys value. Forecast the free cash flows for t+1 and t+2, and the present value of the t+3 cash flows.

Beta	1.10
Sales t	1,000,000
Supernormal g (t+1)	0.06
Constant g (after t+1)	0.02
OPM	0.200
Tax rate	0.300
Capex %	0.09

A.

	t	t+1	t+2	t+3
r	0.163
Sales		1,000,000
FCF		50,000	51,000	52,020
Terminal cash flow			363,776.224
Total cash flow		50,000	414,776.224
PV	349,650.350

b.

	t	t+1	t+2	t+3
r	0.163
Sales		1,020,000
FCF		51,000.00	52,020.000	53,060.400
Terminal CF			371,051.748
Total cash flow		51,000.000	423,071.748
PV	356,643.357

c.

	t	t+1	t+2	t+3
r	0.163
Sales		1,060,000
OPM*(1 -t) - capex %
FCF		53,000.00	54,060.000	55,141.200
Terminal CF			385,602.797
Total cash flow		53,000.000	439,662.797
PV	370,629.370