Consider a firm that plans to expand by borrowing $$40$ million and using internal funds. The firm has a $10$ percent WACC, $10$ million

shares outstanding, and currently does not have any debt or pay dividends. In addition, the firm currently has zero non$-$operating

assets. Free cash flows are forecast to be $-$$$5$ million next year, $$10$ million and $$20$ million the following two years, respectively, and

grow at $6$ percent thereafter. What is the value per share?

$$37\mathrm{.}69($Correct Answer$)$

$$38\mathrm{.}57$

$$41\mathrm{.}78$

$$43\mathrm{.}00$

$$45\mathrm{.}21$