$264$ points

Freeman Enterprises had a free cash flow of $$5$ million today $($year $0$ on your timeline$).$ An analyst expects free cash flows to grow by $10\%$ per year for each of the next three years. After the third year, the analyst expects free cash flows to grow constantly forever at a rate of $2\%$ per year. The firm has $$20$ million in interest bearing debt, $$4$ million in preferred stock, and $$15$ million in excess cash. The firm has $2$ million shares. The cost of capital for the company is $9\%.$ Based on the analyst's assumptions, what is the enterprise value? $($hint: find FCF$1,$ FCF$2,$ FCF$3,$ and TV$)$

$$71\mathrm{.}94$ million

$$90\mathrm{.}16$ million

$$59\mathrm{.}81$ million

$$38\mathrm{.}23$ million