Hi I was hoping to get help with question 7

Based on the following information, what is the stock price per share according to the equity free cash flow model?

Year	0	1
Revenue		600.00
Fixed costs		100.00
Variable costs		200.00
Add. investment in NWC		10.00
Add. investment in
operating long-term assets		70.00
Depreciation		60.00
Interest expenses		35.00
Newly issued debt		25.00
Principle repayments		15.00
Market value of the firm:	Price	Number	Market
	per share	of shares	value
Short-term debt			100.00
Long-term debt			600.00
Preferred stock	10.00	10	100.00
Common stock	18.00	100	1,800.00
Total			2,600.00
Cost of equity (Rs)	0.1500
Tax rate	0.40
Growth rate per year:
From year 1 through year 5	0.10
After year 5	0.07

Select one:

a. $16.55

b. $13.59

c. $14.32

d. $15.51

e. $12.02