An expert has gathered the following data about a company: Forecasted EBIT for next year to be $350 million, forecasted depreciation would be $70 million, forecasted capital expenditures to be $120 million. And the forecasted increase in the operating working capital would be $60 million. Tax rate is recorded to be 30%. WACC is 11%, and cost of equity is 14%. The market value of debt and preferred stock are said to be $550 million. And 20 million are the outstanding shares. The companys free cash flow is anticipated to grow at a constant rate of 6.5% a year. Calculate the intrinsic value of stock.

Provide BA 2 Plus Keys wherever applicable. Do not use excel. Show workings on page