Nico Corporation expects to generate free-cash flows of $200,000 per year for the next five years. Beyond that time, free cash are expected to grow at a constant rate of 5 percent forever. If thefirm's average cost of capital is 15 percent, the market value of the firm's debt and preferred stock is $500,000 and Nico has 100,000 shares of stock outstanding, what is the value of Nico's stock?

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