4. The Garcia Group is a large holding company of luxury brands. An analyst for Goldman Sachs projects that Garcia's Free Cash Flows will grow by 10% per year for six years, decline to 5% per year for the following six years, a finally decline to a long-run growth rate of 2% per year forever. Garcia just reported free cash flow of $40,000,000 and has a WACC of 14%.

a. (5 points) What is the Horizon Value for the Garcia Group? b. (5 points) If Garcia has 15,000,000 shares outstanding what is the value of each share of stock? c. (5 Points) If Garcia has $150,000,000 of debt outstanding, what is the value of each share of stock?