High Tech (HT) has 10 million shares of common stock outstanding and no debt. Smith has estimated that the post-merger free cash flows from HT (in $M) would be 17, 21, and 25 at the end of the following three years. After Year 3, he projects the free cash flow to grow at a constant annual rate of 9%. Smith determines that the appropriate discount rate to be 14%. He also estimates that after three years HT would be worth 20 times its free cash flow in Year 3. In addition, Smith has identified the following three companies comparable to HT, and provides the following information Valuation Variables ($) Alpha Beta Gamma HT Stock Price 42.00 25.00 50.00 38.00 Earnings per share 3.00 1.52 2.36 2.40 Book value per share 16.00 7.50 12.50 12.00

Compute the estimated per-share value of HT stock according to the cash flow multiplier version of the discounted cash flow valuation method;