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Problem $8-10$

You are building a free cash flow to the firm model. You expect sales to grow from $$1\mathrm{.}8$ billion for the year that just ended to $$2\mathrm{.}34$ billion five years from now. Assume that the company will not become any more or less efficient in the future. Assume that the company will grow at a constant rate for $5$ years, and then at a constant rate of $4\mathrm{.}887395\%$ for year $6$ and onward after that. Use the following information to calculate the value of the equity on a per$-$share basis.

Assume that the company currently has $$648$ million of net PP&E$.$

The company currently has $$216$ million of net working capital.

The company has operating margins of $11$ percent and has an effective tax rate of $29$ percent.

The company has a weighted average cost of capital of $10$ percent. This is based on a capital structure of two$-$thirds equity and one$-$third debt.

The firm has $3$ million shares outstanding.

Do not round intermediate calculations. Round your answer to the nearest cent.