Bellatrix Corporation is new entrant into the hairstylist business. They are a fast-growing business that is opening up new locations nationwide. Analysts forecast the following free cash flows (in millions) shown below for the next 3 years, after which FCF is expected to grow at a constant 7% rate. Bellatrixs WACC is 9%.

Year 1 2 3

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FCF -33 51 135

a) What is Bellatrixs horizon value?

b) What is the firms market value today?

c) Suppose Bellatrixs has $88.6 million in debt, $42.4 million in preferred stock, and 60 million shares of common stock outstanding. The firm has no non-operating assets since they rent all their locations. What is your estimate of the current price per share?