Maxwells Hammers is a start up, fast growing supplier of hand tools. The expected free cash flows for the next three years is:

Year 1 ($20,000,000)

Year 2 $30,000,000

Year 3 $40,000,000

It then expects to grow at a constant rate of 7% and its WACC is 13%. Maxwell has $100,000,000 of debt and 10,000,000 shares outstanding

-What is the is the expected per share value of the stock today?

-If the current market price was $50 per share, would you buy it or short it?

-If the current market price was $40 per share, would you buy it or short it?