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Assume that a firm is expected to have $ 1 5 , 2 5 0 , 0 0 0 of free cash flow over the

Assume that a firm is expected to have $15,250,000 of free cash flow over the coming year (FC*F_{1}) and that this free cash flow is expected to then grow at an annual rate of 3 percent. Also assume that the firm has $65,000,000 of debt (market value) outstanding and 3,800,000 shares of common stock. Finally assume that the firm's WACC is 12 percent. Based on this information, and assuming that the firm's capital structure consists solely of this debt and common stock, determine the intrinsic price of the firm's stock on a per share basis . $26.75 $28.95 $ 28.22 $29.68 $27.49

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