PART ONE: Brandtly Industries invests a large sum of money in R&D; as a result, it retains and reinvests all of its earnings. In other words, Brandtly does not pay any dividends, and it has no plans to pay dividends in the near future. A major pension fund is interested in purchasing Brandtly's stock. The pension fund manager has estimated Brandtly's free cash flows for the next 4 years as follows: $2 million, $5 million, $10 million, and $16 million. After the fourth year, free cash flow is projected to grow at a constant 4%. Brandtly's WACC is 9%, the market value of its debt and preferred stock totals $72 million, the firm has $12 million in non-operating assets, and it has 17 million shares of common stock outstanding.

What is the present value of the free cash flows projected during the next 4 years? Do not round intermediate calculations. Round your answer to the nearest dollar. Write out your answers completely. For example, 13 million should be entered as 13,000,000.

What is the firm's horizon, or continuing, value? Round your answer to the nearest dollar. Write out your answers completely. For example, 13 million should be entered as 13,000,000. $ What is the market value of the company's operations? Do not round intermediate calculations. Round your answer to the nearest dollar. Write out your answers completely. For example, 13 million should be entered as 13,000,000.

What is the firm's total market value today? Do not round intermediate calculations. Round your answer to the nearest dollar. Write out your answers completely. For example, 13 million should be entered as 13,000,000.

What is an estimate of Brandtly's price per share? Do not round intermediate calculations. Round your answer to the nearest cent.

PART TWO: You are considering an investment in Justus Corporation's stock, which is expected to pay a dividend of $2.25 a share at the end of the year (D₁ = $2.25) and has a beta of 0.9. The risk-free rate is 4.1%, and the market risk premium is 5.5%. Justus currently sells for $35.00 a share, and its dividend is expected to grow at some constant rate, g. Assuming the market is in equilibrium, what does the market believe will be the stock price at the end of 3 years? (That is, what is ?) Do not round intermediate calculations. Round your answer to the nearest cent.

Part three

Tresnan Brothers is expected to pay a $1.50 per share dividend at the end of the year (i.e., D₁ = $1.50). The dividend is expected to grow at a constant rate of 10% a year. The required rate of return on the stock, r_s, is 12%. What is the stock's current value per share? Round your answer to the nearest cent.