Covan, Inc. is expected to have the following free Year 1 2. Free Cash Flow 12 14 1. Covan has 7 million shares outstanding, $4 million in excess cash, and it has no debt. If its cost of capital is 11%, what should be its stock price? 2. Covan adds its free cash flow 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? 3. Assume you bought Covan stock at the beginning of year 1. What is your expected return from holding Covan stock until year 2