#5 (for Version A) & #1 (for Version B). Biggerstaff & McDonald (B&M) is a privately held company owned by two friends, each with 5 billion shares of common stock. B&M currently has a free cash flow of $48 billion, which is expected to grow at a constant rate of 5% per year. B&M's financial statements report short- term investments of $6 billion, debt of $60 billion, and preferred stock of $50 billion. B&M's weighted average cost of capital (WACC) is 15%. What is its estimated value of operations? What is its estimated intrinsic stock price per share?

\#5 (for Version A) \& \#1 (for Version B). Biggerstaff \& McDonald (B&M) is a privately held company owned by two friends, each with 5 billion shares of common stock. B\&M currently has a free cash flow of $48 billion, which is expected to grow at a constant rate of 5% per year. B\&M's financial statements report shortterm investments of $6 billion, debt of $60 billion, and preferred stock of $50 billion. B\&M's weighted average cost of capital (WACC) is 15%. What is its estimated value of operations? What is its estimated intrinsic stock price per share