James Holliday_Week6Assignment_FI516 - Problem211 FCF1 g b...

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Problem 21-1 FCF1  $2,100,000.00  g 5% b 1.4 rRF 5% RPm 6% Wd 30% T 40% rd 8% rsL 13.4% WACC 10.82% Vops  $36,082,474.23  Vs  $25,262,474.23  Price per share  $25.26  Problem 21-2 FCF1  $2,500,000.00  FCF2  $2,900,000.00  FCF3  $3,400,000.00  FCF4  $3,570,000.00  4th year Interest  $1,472,000.00  g 5% b 1.4 rRF 5% RPm 6% wd 30% T 40% rd 8% rsU 11.78% Tax shield through Year 3  $600,000.00  Tax shield Year 4  $588,800.00  Tax shield horizon  $9,118,584.07  Value of Tax Shield  $7,664,493.82  Unlevered horizon  $55,287,610.62  Unlevered Vops  $44,692,299.08  Vops  $52,356,792.90  Value to Hastings  $41,536,792.90  Price per share
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