CONSTANT GROWTH.Dozier Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows (FCFs) during the next 3 years, after which FCF is expected to grow at a constant 7% rate. Dozier's WACC is 13%.

Year FCF ($ millions)

0-NA

1-($20)

2-$30

3-$40

a.What is Dozier's terminal, or horizon, value? (Hint: Find the value of all free cash flows beyond Year 3 discounted back to Year 3.)

b.What is the firm's value today?

c.What is the expected price per share, if the company has $100 million debt and 10 million shares outstanding?