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Nico Corporation expects to generate free-cash flows of $200,000 per year for the next five years. Beyond that time, free cash flows are expected to

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Nico Corporation expects to generate free-cash flows of $200,000 per year for the next five years. Beyond that time, free cash flows are expected to grow at a constant rate of 5 percent per year forever. The firm's average cost of capital is 15 percent, and the market value of the firm's debt is $500,000. Nico has a 50 million shares of stock authorized, 5 million shares issued and 4.5 million shares repurchased. What is the value of Nico's stock? O $2.43 $3.43 $4.43 $1.43

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