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Assume that today is December 31,2018 and that the following information applies to Vermeil Airlines: After-tax operating income [EBIT(1 T)] for 2019 is expected to

Assume that today is December 31,2018 and that the following information applies to Vermeil Airlines: After-tax operating income [EBIT(1 T)] for 2019 is expected to be $568 million. The depreciation expense is expected to be $124 million. The capital expenditures are expected to be $184 million. No change is expected in net operating working capital. The free cash flow is expected to grow at a constant rate of 4.8% per year. The required return on equity is 14.6%. The WACC is 8.7%. The market value of the companys debt is $3.9 billion. 296 million shares of stock are outstanding. Using the corporate valuation model approach, what should be the companys stock price today?

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