3. J&J firm just paid a dividend of $3.00 (D0) and earned free cash flow of $345,000 for the most recent year (FCF0). Dividends are expected to grow at 6.50% for the following 3 years, and at a 3.00% constant annual rate thereafter. Free cash flows are expected to grow at a constant annual rate of 3.6% going forward. The firm currently holds marketable securities valued at $650,000 and has $7,200,000 of debt and $1,400,000 of preferred stock outstanding. The weighted average cost of capital (WACC) is 5.8% and the cost of equity (RE) is 11.3%. The company has 200,000 shares of common stock outstanding. Estimate the stock price using the dividend discount model. Round your answer to two decimals (e.g. 846.07).

3B. Estimate the stock price using the corporate valuation (free cash flow) model. Round your answer to two decimals.