Agassi's Hairpieces free cash flow was just FCF₀ = $0.94. Analysts expect the company's free cash flow to grow by 25% this year, by 20% in Year 2, and at a constant rate of 4% in Year 3 and thereafter. The WACC for this company 10.81%. Decker has $3.5 million in short-term investments and $12 million in debt and 1.5 million shares outstanding. What is the best estimate of the stock's current intrinsic price?

$8.00

$7.25

$7.50

$7.00

$7.75