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For the last fiscal year, Steady Utilities ( SU ) had EBIT of $ 5 5 0 , 0 0 0 , Depreciation Expense of

For the last fiscal year, Steady Utilities (SU) had EBIT of $550,000, Depreciation Expense of $70,000, and made an Investment in Operating Capital of $45,000. SUs debt has a market value of $400,000, it has $125,000 in Marketable Securities that are not required for the current level of operations, it has 250,000 common shares outstanding, a marginal tax rate of 25%, and its WACC is estimated to be 10%. Please compute SUs free cash flow (FCF) for last year and then assume that SUs FCF will grow at a constant rate of 6%. What is the intrinsic value of SUs stock to the nearest cent given all this information using the Constant Growth FCF Model? Do not enter $ or comma in the answer box. For example, if your answer is $12,300.456 then enter as 12300.46 in the answer box.

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