Problem 3 (9p) Abby Morgan is preparing a valuation of Generic Genetic Corporation. Abby has decided to use a three- stage free cash flow valuation model and the following estimates. The FCFE for year 2019 is $1,500,000. The FCFE is expected to grow at 10 percent in 2020, then at 16 percent annually for the following three years, and then at 6 percent in year 5 and thereafter. Generic Genetic's estimated beta is 2.00, and Abby believes that current market conditions dictate a 2.5 percent risk-free rate of return and a 6.0 percent market risk premium. Generic Genetic has 2 million outstanding common shares. Generic Genetic's before-tax cost of debt is 4.5%. The company has a capital structure consisting of 45 percent of debt and 55 percent of equity. The tax rate is 35%. Given Abby's assumptions and approach, estimate the value of a share of Generic Genetic