A company had FCF last year of $90,000. You believe that FCF will grow at a rate of 6.5% for the next three years. After that, the long-run growth rate will be 3%. The companys WACC is 10%. The company also has outstanding debt in the amount of $400,000 and has 50,000 shares outstanding.

a. What is the horizon value of FCF at the end of year three?

b. What is the present value of the firms operations?

c. What is your estimate of the price per share?