As a junior analyst with Weitz Investment Council you have been asked to determine the equity value per share of ACI Communications. Weitz Investment Council uses the Free Cash Flow to Firm (FCFF) method in their equity valuation. ACI has a WACC of 12%, corporate debt of $100 million, and 6 million shares outstanding. Below is the company information that will help you determine the firms price per share:

WACC	12%
Growth after year 3	4%
Corporate debt	100
shares outstanding	6
Year	1	2	3
Tax rate	40%	40%	40%
Captial Expenditures	30	40	50
Change in NWC	5	6	7
Shares Outstanding	6	6	6
Income Statement:
Sales (000,000)	200	220	240
COGS	100	110	120
Sales & Administrative Expense	20	22	24
Depreciation & Amortization	50	51	52
Total Operating Costs	170	183	196
Operating Income (EBIT)	30	37	44
Interest Expense	4	5	6
Earnings Before Taxes	26	32	38
Taxes	10.4	12.8	15.2
Net Income	$15.60	$19.20	$22.80
EPS	$2.60	$3.20	$3.80

If ACI is expected to grow by 4% after year 3, what is the price per share of ACI Communications using the Free Cash Flow to the Firm (FCFF) method?

a) 13.85

b) 45.68

c) 27.40

d) 185.25

e) 220.16