According to the value-based management model, what is the stock price per share given the following:

Year 1

Revenue 725.00

Fixed Costs 90.00

Variable Costs 280.00

Additional investment in NWC 3.00

Additional investment in operating long-term assets 80.00

Depreciation 75.00

Tax Rate 0.40

The free cash flow is expected to grow at 8% per year from year 1 to year 5 and 6% per year after year 5 to infinity.

WACCcomp = 20%

Market Value of the firm:

Price Per Share #of Shares Market Value

Long term debt 700.00

Preferred stock 7.00 10 70.00

Common Stock, equity 15.00 100 1,500.00

Total 2,270.00

Market value of non-operating short term assets=50

Market value of non-operating long term assets=80

a. $5.68

b. $7.22

c. $9.97

d. $6.90

e. $8.54