At the end of the year 2004 the CKL Corporation had operating free cash flow (OFCF)

of $300,000 and shares outstanding of 100,000. Total debt is currently

$10,000,000. The company projects the following annual growth rates in OFCF

Year	Growth Rate
2005	25%
2006	20%
2007	15%
2008	10%
2009	12%
2010	14%
2011	16%
2012	18%

From year 2013 onward growth in OFCF is expected to remain constant at 5% per year. The stock has a beta of 1.1 and the current market price is $80. Currently the yield on 10-year Treasury notes is 5% and the equity risk premium is 4%. The firm can raise debt at a pre-tax cost of 9%. The tax rate is 25%. The proportion of equity is 55% and the proportion of debt is 45%.

Calculate the intrinsic value of the stock now (Year 2004).