3. A company forecasts free cash flow in one year to be -$80 million and free cash flow in two years to be $200 After the second year, free cash flow will grow at a constant rate of 6 percent per year forever. If the overall cost of capital is 14 percent, what is: a. The horizon value? b. The current value of operations? . The value of company's operations is $400 million. The company's balance sheet shows $20 million in short-term investments that are unrelated to operations. The balance sheet also shows $90 million in notes payable, $30 million in long-term debt, and $40 million in preferred stock. If the company has 10 million shares of stock, what is your best estimate for the stock price per share