Combine Corp. has a cash balance of $30 million, $200 million in debt, and 100 million shares outstanding. You have been tasked to extend the discounted cash flow valuation of Combine which was done by another analyst. Their estimates of after-tax operating income and cash flows for the next 4 years are given below:

Year 1 2 3 4

EBIT(1-t) 200 440 968 2,130

CF 80 176 387.2 851.84

You estimate that the company's cost of capital is 15%.

Part 1

Given the analyst's estimates of the growth rate and the cash flows, and assuming that the return on capital will stay constant over the next 4 years, what is the return on capital?

Part 2

If the return on capital stays constant forever and the expected growth rate is 4% after year 4, what is the value of the firm at the end of the fourth year, i.e., the terminal value (in $ million)?

Part 3

What is the current value per share (in $)?