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Brandthy Industries invests a large sum of money in R8D; as a result, it retains and reinvests all of its earnings. In other words, Brandtly

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Brandthy Industries invests a large sum of money in R8D; as a result, it retains and reinvests all of its earnings. In other words, Brandtly does not pay any dividends, and it has no plans to pay dividends in the near future. A major pension fund is interested in purchasing Brandtly's stock. The pension fund manager has estmated Brandtly's free cash flows for the next 4 years as follows: $2 million, $7 million, $12 million, and $14 million. After the fourth year, free cash flow is projected to grow at a constant 4%. Brandtly's WacC is 14%, the market value of its debt and preferred stock totals $42 million, the firm has $16 milfion in nonoperating assets, and it has 23 million shares of common stock outstanding, a. What is the present value of the free cash flows projected during the next 4 years? Do not round intermediate calculations. Round your answer to the nearest dollar. Write out your answers completely. For example, 13 million should be entered as 13,000,000. s. b. What I the firm's horizon, or continuing, value? Round your answer to the nearest dollar, Write out your answers comptetely. For example, 13 million should be entered as 13,000,000. 3 c. What is the market value of the company's operations? Do not round intermediate calculations. Round your answer to the nearest dollar. Write out your answers combietely. For example, 13 million should be entered as 13,000,000. 3 What is tha firms total market value today? Do not tound intermediate calculations. Round your answer to the nearest doliar. Write out your answers completely, Foc example, 13 milion should be entered as 13,000,000. 4 d. What is an estimate of Brandth's price per shote? Do not round intermediate calculaticas. Hound your answer to the nearest cent. 3

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