IIlT-Mobile quot;e 11:05 PM 4 amp;gt;3 56% El Done Saito Solar - Discounted Cash Flo. THUNDERBIRD scuom or GLDBAL MANAGEMENT T130357 LENA BOOTH...

1.Why do we use free cash flows, instead of profits, when evaluating the value of a company?2.Explain what is the WACC in simple terms, and what its role in valuation3.Based on the SAITO Solar case and the estimate of Mr Suzuki of 1-3% growth rate for the next twenty years, how much would SAITO be valued at? Be reminded that the owners have set a required 10% rate of return.4.In general, describe how to estimate a company's valuation when the free cash flow are uneven the first years, but later stay constant thereafter.5.Refer to the Appendix 3: free cash flow forecast. Assume 9-11% WACC, and a terminal value of 1-3% growth rate. What would be the range of values for Saito Solar?6.Think from a strategic point of view, should Mr. Saito - and partners - sell the firm? Explain why.