Hofmann Enterprises invests a lot of money in R&D, and as a result it retains and reinvests all of its earnings instead of paying dividends. A pension fund manager is interested in purchasing Hofmanns stock and has estimated its free cash flows for the next 3 years as follows: $4 million, $7 million, and $12 million. After the 3rd year, FCF is projected to grow at a constant 8 percent. Hofmanns WACC is 13 percent, its debt and preferred stock total $50 million, and it has 4 million shares of common stock outstanding. What is the value of Hofmanns stock price?

	a.	$31.58
	b.	$49.24
	c.	$44.08
	d.	$36.74
	e.	$56.63