It is time for IPO for PT Cinta Nusantara and the accountant need to calculate company’s common stock value. Here is the information; WACC 10%, debt IDR 200,000 and preferred stock IDR 500,000 in term of market value. After the year 2024, company expect its cash flow grow 4% per year forever and here the estimated free cash flow over the next 5 years in below

year 2020 2021 2022 2023 2024

FCF, t, IDR 220,000 250,000 300,000 320.000 350,000

FCF = Free Cash Flow

IDR = Indonesian currency rupiah

Required:

a. Estimate the value of PT Cinta Nusantara using free cash flow valuation model

b. Using information from a, calculate common stock value for PT Cinta Nusantara

c. If PT Cinta Nusantara plan to issue 200,000 shares of common stock, what is estimated value per share?