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2. (15 points) Use next year's Cash Flow Forecast for Five Guys to answer the...

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2. (15 points) Use next year's Cash Flow Forecast for Five Guys to answer the questions below. Demand Cash Flow I Weak $25,000 Expected $35,000 Strong $45,000 a. b. Suppose Five Guys has only one project, as forecast above, and an unlevered cost of equity of 8%. What is the value of the company if the demand is as expected? (5 points) Suppose Five Guys has only one project, as forecast above, and an unlevered cost of equity of 8%. If the company borrows $10,000 at 5% to make the investment, what is expected return to equity holders? Assume the demand is as expected. (5 points) Suppose Five Guys has only one project, as forecast above, and an unlevered cost of equity of 8%. If the company borrows $10,000 at 5% to make the investment, what is the return to equity holders if demand is weak? (5 points) C

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