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Part $1$

Free cash flow valuation$$Nabor Industries is considering going public but is unsure of a fair offering price for the company. Before hiring an investment banker to assist in making the public$$ offering, managers at Nabor have decided to make their own estimate of the$$ firm's common stock value. The$$ firm's CFO has gathered data for performing the valuation using the free cash flow valuation model.

The$$ firm's weighted average cost of capital is $11\%,$ and it has $ $3$ comma $320$ comma $000$ of debt at market value and $ $660$ comma $000$ of preferred stock in terms of market value. The estimated free cash flows over the next $5$ years, $1$ through $5,$ are given in the$$ table, LOADING.... After year $5,$ the firm expects its free cash flow to grow by $5\%$ annually.

a$.$Estimate the value of Nabor$$ Industries' entire company by using the free cash flow valuation model.

b$.$Use your finding in part a$,$ along with the data provided$$ above, to find Nabor$$ Industries' common stock value.

c$.$If the firm plans to issue $200$ comma $000$ shares of common$$ stock, what is its estimated value per$$ share?

$1300,000$

$2360,000$

$3410,000$

$4450,000$

$5500,000$