5. Wilson, Inc. is considering going public but is unsure of a fair offering price for the company. Before hiring an investment banker to assist in making the public offering, managers at Goff have decided to make their own estimate of the firm's common stock value. The firm's CFO has gathered data for performing the valuating using the free cash flow valuation model.
The firm's weighted average cost of capital is 18%, and it has $1,000,000 of debt at market value and $750,000 of preferred stock at its assumed market value. The estimated free cash flows over the next 5-year, 2016 through 2020, are given below. Beyond 2020 to infinity, the firm expects its free cash flow to grow by 5% annually.
Year	FCF
2016	$245,000
2017	275,000
2018	335,500
2019	395,200
2020	515,000
2020	4,159,615
A. Estimate the value of Goff Industries' entire company by using the free cash flow valuation model.
B. Use your finding in part a, along with the data provided above, to find Goff Industries' common stock value.
C. If the firm plans to issue 150,000 shares of common stock, what is its estimated value per share?
WACC	0.18
Debt	1,000,000
Preffered Stock	750,000
GR	0.05