1. Free Cash Flow Valuation. Longview Industries is considering going public but is unsure of a fair offering price for the company. Before hiring an investment banker to assist in making the public offering, managers at LI have decided to make their own estimate of the firms common stock value. The firms CFO has gathered data for performing the valuation using the free cash flow valuation model. LIs weighted average cost of capital is 12 percent, and it has $2,300,000 of debt at market value and $600,000 of preferred stock at its assumed market value. The estimated free cash flows over the next 5 years are given below. From year 5 on, the firm expects its free cash flow to grow by 4 percent annually.

Year (t)	Free Cash Flow (FCFt)
1	275,000
2	300,000
3	325,000
4	350,000
5	375,000

1. Estimate the value of LI (the entire company) by using the free cash flow valuation model.
2. Use your findings in part a, along with the data provided above, to find LIs common stock value.

c. If LI plans to issue 140,000 shares of common stock, what is its estimated value per share?