Covant, Inc. is expected to have the following free cash fow 13 15 Grow by 3% per year a, Covan has 7 milon shares outstandig. S2 milion in oxcess cash, and it has no debt.lf acost of captalls11%, 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 retum from holding Covan sock until year 27 a.Coan has 7 mlion shares outstandrg, S2 milon in exooss cash, and it has nodebt.fbost of capital is 11%,what should be its stock price? The stock prioe should be $ (Round to the nearest cert) b. Covan adds its FCF to cash, and has no plans to add debit f you plan to sell Covan at the beginning of year 2, what is its expected price? you plantosel Covan atthe begnning of year 2. its pne should be S (Round to the nearest cert) e. Assume you bought Covan stock at the beginning of year 1. What is your expected return from holding Covan stock until yoar 27 Your expected retum from, holding Coven stok untl the begning of year 2 sLJ%. (Round toore decinalplace) Enter your answer in each of the arswer boxes. Save for Later 23 MacBook Air 2 3 4 WLE tab caps lock shift