Question $5$

Suppose Company $x$ is expected to generate the following consecutive and annual free cash

flows $($in $ millions$)$ of $$475,$$$325,$ and $$125$ over the next $3$ years. Afterward, the free cash

flows are expected to grow at a rate of $13\mathrm{.}00\%$ per year $($that is$,$ FCF in year $4$ will be $13\mathrm{.}00\%$

greater than $$125,$ and so on$).$ Company $x$ has $$46$ million of debt, cash of $$70$ million, and

$130$ million shares outstanding. With a weighted average cost of capital of $14\mathrm{.}00\%,$ what is an

estimate of Company X$\text{'}$s current stock price per share?

$$89\mathrm{.}38$

$$79\mathrm{.}30$

$$69\mathrm{.}92$

$$5\mathrm{.}96$