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John Smith, an analyst with Fidelity Securities, is trying to evaluate Company ABCs target stock price per share. Free cash flow (FCF) estimates for the

John Smith, an analyst with Fidelity Securities, is trying to evaluate Company ABCs target stock price per share. Free cash flow (FCF) estimates for the next four years are -$2, $15, 17, and $20 million, after which the FCF is expected to grow at 6% forever. The overall firm cost of capital is 9%. The firm has $45 million in debt and has 16 million shares of stock. What are the horizon value HV and the estimated value per share? Show your calculations

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