(Please use a math, finance equation and/ or formula. DONT USE A SHEET CHART, EXCEL, OR GRAPH)

19. Brantley Industries invests a large sum of money in R&D, as a result, it retains and reinvests all of its earnings (pays no dividends). Brantley has the following projected cash flows: $3 million, $6 million, $8 million, and $16 million. After the 4th year, free cash flow is projected to grow at a constant 3%. Brantelys WACC is 9%, the market value of its debt and preferred stock totals $75 million, the firm has $15 million in non-operating assets, and it has 7.5 million shares of common stock outstanding.

a. What is the present value of the free cash flows projected during the next 4 years?

b. What is the firms horizon, or continuing value?

c. What is the market value of the companys operations? What is the firms total market value today?

d. What is an estimate of Brandtlys price per share?