• Calculate the dollar amount to 2 decimal places (e.g., 12.345 = $12.35).
• You have two ways to calculate PV. (1) Mathematically. (2) Use the financial calculator. If you use (1), you have to write the mathematical formula. If you use (2), you have to write the key sequence.

S&S Corporation expects FCF = - 100 ($ million) in year 2022, and FCF = + 10 ($ million) in year 2023. Its FCF will grow at 13% every year after 2023.

2021 2022 2023

Year 0 Year 1 Year 2 _________________________

Free Cash Flow ($ Million) -100 +10 FCF grows at 13% every year after 2023

Assume the following.

• Corporations WACC = 15%.
• Corporation has short-term investments = + 24 ($ million).
• Corporation has NO short-term debt, but it has long-term debt = + 32 ($ million).
• Corporation has NO preferred stock.
• Corporation has 8 million common stock shares outstanding.

Calculate the Corporations intrinsic stock price.