Please answer the following questions and show work. (Stocks, Cost of Capita & Capital Budgeting)

5. You must estimate the intrinsic value of Gallovits Technologies stock. Gallovitss end-of-year free cash flow (FCF) is

expected to be $25 million, and it is expected to grow at a constant rate of 8.5% a year thereafter. The companys WACC is

11%. Gallovits has $200 million of long-term debt plus preferred stock, and there are 30 million shares of common stock

outstanding. What is Gallovits' estimated intrinsic value per share of common stock?

a. $22.67

b. $24.00

c. $25.33

d. $26.67