Roban Corporation 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 Roban have decided to make their own estimate of the value of the companys ordinary shares. The companys CFO gathered the following data for performing the valuation using the free cash flow valuation model.

The companys weighted average cost of capital is 12 %. It has $1,400,000 of debt at market value and $500,000 of preferred shares at its assumed market value. The estimated free cash flows over the next five years, 2016 to 2020, follow. Beyond 2020, to infinity, the company expects its free cash flow to grow by 4 % annually.

Year Free Cash Flow

2016 $250,000

2017 $290,000

2018 $320,000

2019 $360,000

2020 $400,000

a. Estimate the value of Roban Corporations entire company by using the free cash flow approach.

b. Use your finding in part (a), along with the data provided above, to find Roban Corporations ordinary share value.

c. If the company plans to issue 220,000 ordinary shares, what is its estimated value per share?