Rainy City Coffee's (RCC) free cash flow next year will be $100 million, and it is expected to grow at a 4% annual rate indefinitely. The company's weighted average cost of capital is 10%, the market value of its liabilities is $1 billion, and it has 20 million shares outstanding. 1. Estimate the price per share of RCC's common stock. 2. A hedge fund believes that by selling the company's private jet and instituting other cost savings, it can increase RCC's free cash flow next year to $110 million and can add a full percentage point to RCC's growth rate without affecting its cost of capital. What is the maximum price per share the hedge fund can justify bidding for control of RCC