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Please show work and label each part!! Flex Gyms embarks on an aggressive facility expansion...

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Finance

Please show work and label each part!! Flex Gyms embarks on an aggressive facility expansion that requires additional capital. Management decides to finance the expansion by borrowing $145 million and issuing $35 million in preferred stock. The projected free cash flows are -$25 million for the end of year 1, $15million for year 2, $40 million for year 3, and $70 million for year 4. After the fourth year, free cash flow is projected to grow at a constant 4.25%. The overall cost of capital is 6.75%.

a) Calculate the total enterprise value.

b) Calculate the per share value if the company has 45million shares of stock.

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