2. You believe a company will deliver Enterprise Free Cash Flows of 90 Mn at the end of the current year, 102 Mn at the end of the year after and thereafter you expect the cash flows to grow at 6%. If the current price of the 200 Mn shares in issue is 8.00, the companys debt is valued at 1,200 Mn and its cost of capital is 10%, then you believe that:

a) the shares are overvalued by 50% b) the shares are overvalued by 33.3% c) the shares are correctly valued d) the shares are undervalued by 33.3% e) the shares are undervalued by 50%