OpenAlo is a low cost airline company and it will go public in Year 2020. Based on the following company and market information, What is the expected terminal value of the company in Year 2027?

Weighted average cost of capital: 10%

Marginal Tax rate: 22%

2019 Free Cash Flows (FCF)= $1.9 billions.

Expected annual growth rate of FCF for the low cost airline industry predicted by analysts:

14% per year until Year 2027

and

a constant annual rate 7% after Year 2027 for the foreseeable future.