Kk103. Food Express is a well-established grocery chain. Computer Power is an up-and-coming computersoftware developer for business. Bridge Steel is an integrated steel producer, focusing on steel forbuildings and bridges. Some information about the companies was provided by an investmentbanking company as follows:FirmFood ExpressComputer PowerBridge SteelBeta0.710.941.07Portfolio's betaExpected CashFlowYear 1$7.7 million2 million.9.9 millionExpected Cash Flow Growth RateYears 2 to 5 year 6 and on2%8%28a. If the risk-free rate is 3% and the expected market risk premium is 7%, what is each firm worth?(Enter your answers in millions. For example, an answer of $13,000,000 should be entered as 13.Round your answers to 2 decimal places. Do not round intermediate calculations.)Value of Food Express (FE) todayValue of Computer Power (CP) todayValue of Bridge Steel (BS) today$$$millionmillion2%6%38millionb. If you owned all three companies, what would be the beta of your stock portfolio based on market-value weights? (Round your answer to 2 decimal places.)

The valuation of the firm is the process of finding the overall wealth of the company. The firm’s…

Food Express is a well-established grocery chain. Computer Power is an up-and-coming computer software developer for business. Bridge Steel is an integrated steel producer, focusing on steel for buildings and bridges. Some information about the companies was provided by an investment banking company as follows: Firm Food Express Computer Power Bridge Steel Beta 0.71 0.94 1.07 Portfolio's beta Expected Cash Flow Year 1 $7.7 million 2 million 9.9 million Expected Cash Flow Growth Rate Years 2 to 5 year 6 and on 2% 88 2% a. If the risk-free rate is 3% and the expected market risk premium is 7%, what is each firm worth? (Enter your answers in millions. For example, an answer of $13,000,000 should be entered as 13. Round your answers to 2 decimal places. Do not round intermediate calculations.) Value of Food Express (FE) today Value of Computer Power (CP) today Value of Bridge Steel (BS) today $ E b. If you owned all three companies, what would be the beta of your stock portfolio based on market- value weights? (Round your answer to 2 decimal places.) $ million $ 2% 6% 3% million million