It is December 2022. You work as a financial analyst for Merck & Co. and are tasked with the due diligence on the proposed acquisition of a biotech startup. You estimated the following cash flows for the startup:

Year	Expected free cash flow ($ million) (end of year)
2023	88.5
2024	132.75
2025	172.58
2026	207.09
2027	227.8

After 2027, cash flows are expected to grow by 2% per year. Based on the riskiness of your industry, you think that your weighted average cost of capital is 12%.

The biotech firm has 5 million shares and bonds worth $120 million outstanding.

Part 1

What is the terminal value, i.e., the present value of all free cash flows from 2028 to infinity expressed in 2027-dollars (in $ million)?

Part 2

What is the total value of the company (in $ million)?

Part 3

What is the value per share of common stock (in $)?