HCB, Inc. just had free cash flows of $3 million (FCF0). Free cash flows are expected to grow at a rate of 6%

forever. It also has the following financial information:

Market value of HCB Debt = $70 million

Short-term investments = $15 million

Book value of equity = $60 million

Total Assets = $80 million

Shares outstanding = 2.5 million

Required return on stock = 11%

WACC = 9%

Calculate HCB's intrinsic value per share

a.

$19.58

b.

$20.40

c.

$21.01

d.

$22.03

e.

$22.85

explain it