Financial Management

Using formula

Russell Industries retains all of its earnings and does not pay a dividend. A major hedge fund is interested in buying Russells stock. The hedge fund manager estimates the free cash flow over the next 4 years will be $3mm, $6mm, $10mm, and $12mm. After the 4^th year, the free cash flow is expected to grow at 5%. Russells WACC is 12%, its debt is $40mm, and it has 10 million shares of common stock. What is the firms market value? What is the Terminal value? What is the stock price per share?