11. The firm's free cash flows are expected to be unstable during the next few years while the company undergoes restructuring. However, FCF is expected to be P 50 million in Year 5, i.e., FCF at t= 5...

Extracted text: 11. The firm's free cash flows are expected to be unstable during the next few years while the company undergoes restructuring. However, FCF is expected to be P 50 million in Year 5, i.e., FCF at t= 5 equals P 50 million, and the FCF growth rate is expected to be constant at 5% beyond that point. If the weighted average cost of capital is 12.5%, what is the horizon value (in millions) at t = 6? а. P 700 с. Р 883 b. P 667 d. P 441 12. The firm forecasts a free cash flow of P 41 million in Year 3, i.e., at t = 3, and it expects FCF to grow at a constant rate of 5% thereafter. If the weighted average cost of capital is 11% and the cost of equity is 15%, what is the horizon value, in millions at t = 3? а. Р 840 с. P 883 b. Р 717 d. P 834