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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

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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 Brandtly's stock The pension fund manager has estimated Brandtly's free cash flows for the next 4 years as follows: $3 million, $7 million, $11 million, and $15 million. After the fourth year, free cash flow is projected to grow at a constant 8%. Brandtly's WACC is 9%, the market value of its debt and preferred stock totals $60 million, the firm has $15 million in non-operating assets, and it has 17 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 28765255 b. What is the firm's horizon, or continuing, value? Round your answer to the nearest dollar. Write out your answers completely. For example, 13 million should be entered as 13,000,000. 1620000000 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 completely. For example, 13 million should be entered as 13,000,000 What is the firm's total market value today? 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. 3. What is an estimate of Brandtly's price per share? Do not round intermediate calculations. Round your answer to the nearest cent

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