Based on current projection, the firm will have a free cash flow of $$100$ million at the end of year $1.$ Assuming the free cash flow will grow at a rate of $6\%$ perpetually, what should be the value of stock? Given that the cost of equity is $10\%,$ the weighted average cost of capital is $8\%.$ The company has a cash balance of $$500$ million, with debt $$1200$ million and $500$ million shares outstanding.