$2.$ Gershwin Company is an all$-$equity firm that has projected sales of $$100$ million next year. Sales are expected to grow at $14$ percent for the following two years and then level off at $5$ percent thereafter. Costs and depreciation are $40$ and $20$ percent of sales, respectively. Net working capital and capital spending requirements are expected to be $10$ percent of sales. There are $6\mathrm{.}5$ million shares of stock outstanding, the applicable tax rate is $35$ percent, and investors require a return of $13$ percent for a company of this risk. Given free cash flow $($FCF$)$ of the firm is defined by the sum of the components on the left$-$hand side of the cash flow identity $($discussed in Chapter $2),$ answer the following:

a$.$ Compute Gershwin$$s FCF for years $13.$

b$.$ Compute the present value of the FCF for years $13.$

c$.$ Considering the growth rate in sales after year $3,$ compute the present value $($i$.$e$.$ t$=0)$ of all FCF for Gershwin.

d$.$ If you divide the value obtained in part c by the number of shares of stock outstanding, what would this represent?