Answer question A-D of the mini case. Question C must include the 2 pie charts.

Answer question A-D of the mini case. Question C must include the 2 pie charts.

Answer question A-D of the mini case. Question C must include the 2 pie charts. (Question a and b on page one and question c and d on page 2)
Mini Case
Your employer, a mid-sized human resources management company, is exploring opportunities to expand into related industries. Among the options under consideration is the acquisition of Temp Force Company, an employment agency specializing in providing word processor operators and computer programmers to businesses experiencing temporary surges in workloads. Another possibility involves purchasing Biggerstaff & McDonald (B&M), a privately held organization co-owned by two partners, each holding 5 million shares of stock.
Currently, B&M reports a free cash flow (FCF) of $24 million, which is projected to grow at a constant rate of 5%. Its financial statements list short-term investments of $100 million, debt of $200 million, and preferred stock worth $50 million. B&M’s weighted average cost of capital (WACC) stands at 11%.
Using this information, address the following questions:
Questions
a. Briefly describe the legal rights and privileges of common stockholders.
b. Define free cash flow (FCF). Explain what is meant by the weighted average cost of capital (WACC) and outline the free cash flow valuation model.
c. Create a pie chart that illustrates the sources contributing to a hypothetical company’s total value. In a second pie chart, demonstrate the claims on the company’s value, including how equity represents a residual claim.
d. Assume the free cash flow at Time 1 is expected to grow indefinitely at a constant rate of gLgL, where gL

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