CHI Company anticipates next year's capital expenditures will be $$15$ million, expects a $$3\mathrm{.}25$

million decrease in net working capital, predicts sales will be $$130$ million, operating

expenses will be $$85$ million, depreciation expense will be $$20$ million, and interest expense

will be $$3\mathrm{.}5$ million. CHI's tax rate is $21\%$ and the weighted average cost of capital $($WACC$)$ is

$12\%.$ The company has $7\mathrm{.}5$ million shares outstanding which currently trade for $$40$ per share

and has $$70$ million of long$-$term debt. You expect $\frac{?}{\text{C}\text{H}\text{I}}\text{'}$s free cash flow to the firm to grow by

$20\%$ for one year $($year $1$ to $2)$ then $4\%$ per year forever.

A$)$ What is the intrinsic price per share of CHI's equity using the free cash flow model? Are they

overvalued, undervalued, or correctly valued?