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?

please show formulas and all work.