Crane Sporting is a listed company in New York. Its current before-interest, after-tax operating cash flow is $200 million. The cash flows are expected to grow at 8% per annum over the next three years, after which the growth will fall to 3% per annum and stay at this rate forever. The following information is also available:

Tax rate	30%
Risk-free rate	5%
Market return	15%
Equity beta	2
Cost of debt	10%
D/E	60%

question

Using the free cash flow methodology, the value of Crane Sporting is closest to:

	A.	$1,531 million
	B.	$1,072 million
	C.	$717 million
	D.	None of the above