portage Bay Enterprises has $3 million in excess cash, no debt, and is expected to have free cash flow of $10 million next year. Its FCF is then expected to grow at a rate of 4% per year forever. If Portage Bay's equity cost of capital is 11% and it has 4 million shares outstanding, what should be the price of Portage Bay stock?

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Part 1

The price of Portage Bay's stock is