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Our acquisition target is a privately held company in a growing industry. The target has recently borrowed $30 million to finance its expansion; it has

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Our acquisition target is a privately held company in a growing industry. The target has recently borrowed $30 million to finance its expansion; it has no other debt or preferred stock. It pays no dividends and currently has no marketable securities. We expect the company to produce free cash flows of -S5 million in one year, $15 million in two years, and S30 million in three years. After three years, free cash flow will grow at a rate of 6%. Its WACC is 10% and it currently has 12 million shares of stock. Find price per share. A. 45.67 B. none of the options C. 49.81 D. 52.34

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