5. The free cash flows (in millions) shown below are forecast by GS Inc. If the weighted average cost of capital is 12% and the free cash flows are expected to grow at 4.44% after the first 3 years.

Year: 01 234

Free cash flow:-$20-$5$45$47

a)What is the value of operations? (Note: this is a non-constant growth model. So you need to (1) get the value asset at end of year 3 and(2) discount the FCFs and the horizon value to time 0)

The firm has $ 20 million of short-term investment, $30 million of longterm debt, and $40 million of preferred stock. This firm has 10 million shares of stock outstanding. What is the best estimate of the stock's price per share?