MF Corp reported net income of $160 million in 2021, 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 $2 billion in debt carrying a yield to maturity of 5%. 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 2022 to 2025, after which the growth rate is expected to drop to 3%.

(a). Estimate the free cash flow to the firm in 2021. (b). Estimate the value per share at the end of 2021 using FCFF approach.