Brandtly Industries invests a large sum of money in R&D; 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 Brandtlys stock. The pension fund manager has estimated Brandtlys free cash flows for the next 4 years as follows: $3 million, $6 million, $8 million, and $16 million. After the fourth year, free cash flow is projected to grow at a constant 3%. Brandtlys WACC is 9%, the market value of its debt and preferred stock totals $75 million, the firm has $15 million in non-operating assets, and it has 7.5 million shares of common stock outstanding.

a)-What is the present value of the free cash flows projected during the next 4 years?

b)-What is the firms horizon, or continuing, value?

c)-What is the market value of the companys operations? What is the firms total market value today?

d)-What is an estimate of Brandtlys price per share?