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Question 5 Mazona Corp.'s free cash flow to the firm for the 2018 financial year...

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Question 5 Mazona Corp.'s free cash flow to the firm for the 2018 financial year just ended is $205 million. The firm has $440 million in bonds outstanding, with an average interest rate of 5.00%. During the year of 2018, the firm increased its long-term borrowing by $3 million. The firm's cash flow is projected to grow at 3.00% indefinitely. The required rate of return by equity holders is 12.00%. The tax rate is 35.00%. 10 points a. What was the free cash flow to equity holders in 20183 2018 FCFE (to nearest million) b. What is the intrinsic value of Mazona's equity (in million) as of the end of 2018? ic value of equity (to nearest million)

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