• Please Provide step by step explanation on how the answer was found.

Question::::::

If you have been assigned the task of using the corporate valuation model to estimate Keen Co.'s intrinsic value. Keen's WACC is 8%, its expected end-of-year free cash flow (FCF1) is $50 million, the FCFs are expected to grow at a constant rate of 3% a year in the future, the company has $250 million of long-term debt plus preferred stock, and it has 25 million shares of common stock outstanding. What is the company's estimated intrinsic value per share of common stock?

a. $20.95

b. $24.50

c. $30.00

d. $36.25

e. $40.00

• Please show formula.