Ashley Winters, a Suffolk MBA, has been hired to value Goliath Communications, a company that is currently undergoing rapid growth and expansion. She is convinced that a value for the equity of Goliath can be reliably obtained through the use of a three-stage free cash flow to equity (FCFE) model with declining growth in the second stage. Based on up-to-date financial statements, she has determined that the current FCFE per share is $0.90. Ashley has prepared a forecast of expected growth rates in FCFE as follows: Stage 1: 10.5% for years 1 through 3 Stage 2: 8.5% in year 4, 6.5% in year 5, 5% in year 6 Stage 3: 3% in year 7 and thereafter Moreover, she has determined that the company has a beta of 1.8, the current risk-free rate is 3%, and the equity risk premium is 5%. The per-share value Winters should assign to Goliath's equity is closest to $13.55 $20 24 $16.87