$9-19.$ Corporate Valuation Barrett Industries invests a large sum of money in R&D; as a result, it retains and reinvests all of its earnings. In other words, Barrett does not pay any dividends and it has no plans to pay dividends in the near future. A major pension fund is interested in purchasing Barrett's stock. The pension fund manager has estimated Barrett's free cash flows for the next $4$ years as follows: $$3$ million, $$6$ million, $$10$ million, and $$15$ million. After the fourth year, free cash flow is projected to grow at a constant $7\%.$ Barrett's WACC is $12\%,$ the market value of its debt and preferred stock totals $$60$ million, and it has $10$ million shares of common stock outstanding.

b$.$ What is the firm's horizon, or continuing, value?

c$.$ What is the firm's total value today?

d$.$ What is an estimate of Barrett's price per share?