PHB Company currently sells for 32.50 per share. In an attempt to deter- mine whether PHB is fairly priced, an analyst has assembled the following information:

The before-tax required rates of return on PHB debt, preferred stock, and common stock are, respectively, 7.0%, 6.8%, and 11.0%.

The companys target capital structure is 30% debt, 15% preferred stock, and 55% common stock.

The market value of the companys debt is 145 million, and its preferred stock is valued at 65 million.

PHBs FCFF for the year just ended is 28 million. FCFF is expected to grow at a constant rate of 4% for the foreseeable future.

The tax rate is 35%.

PHB has 8 million outstanding common shares.

What is PHBs estimated value per share? Is PHBs stock underpriced?