$254$ points

You estimate the free cash flows for XYZ for the next $3$ years. You predict the free cash flows will be $$65$ million, $$80$ million, and $$95$ million. After the third year, you believe that the free cash flows will grow forever at $4\%.$ The firm's cost of capital is $9\%.$ Currently, the book value of bonds is $$230$ million, book value of notes payable is $$40$ million, and the book value of preferred stock is $$50$ million, and has cash of $$60$ million. If the firm has $25$ million shares, find the equity value per share. $($hint: find the terminal value and the enterprise value first$)$

$$ $$58\mathrm{.}65$

$$42\mathrm{.}17$

$$49\mathrm{.}15$

$$56\mathrm{.}13$