MF Corp reported net income of $160 million in 2020, after interest expenses of $40 million. The corporate tax rate was 38%. It reported depreciation of $102 million in that year, capital spending was $90 million and there is not change in net working capital. The firm also had $1 billion in debt carrying a yield to maturity of 6%. The beta of the stock is 1.05, and there were 40 million shares outstanding (trading at $60 per share). The risk-free rate of return is 2%, the expected rate of return on the market portfolio is 10%. The firm expects FCFF to grow at 6.5% a year from 2021 to 2024, after which the growth rate is expected to drop to 3%.

(a). Estimate the free cash flow to the firm in 2020.

(b). Estimate the value per share at the end of 2020 using FCFF approach