Covan, Inc. is expected to have the following free cash flow:

a$.$ Covan has $7$ million shares outstanding, $$3$ million in excess cash, and it has no debt. If its cost of capital is $11\%,$ what should be its stock price?

b$.$ Covan adds its FCF to cash, and has no plans to add debt. If you plan to sell Covan at the beginning of year $2,$ what is its expected price?

c$.$ Assume you bought Covan stock at the beginning of year $1.$ What is your expected return from holding Covan stock until year $2?$

a$.$ Covan has $7$ million shares outstanding, $$3$ million in excess cash, and it has no debt. If its cost of capital is $11\%,$ what should be its stock price?

The stock price should be $ $($Round to the nearest cent.$)$

Data table

$($Click on the following icon in order to copy its contents into a spreadsheet.$)$

$\backslash$table$[[$Year$,1,2,3,4,$dots