Sally's Dog Grooming current free cash flow = FCF₀ = 1.50. You forecast:

1. The company's free cash flow to grow by 25% this year,

2. by 12% in year 2, and

3. at a constant growth rate of 4% in year 3 and thereafter.

The Weighted Average Cost of Capital for Sally's = 10.00%. Sally's has $5 million in short-term investments and $10 million in debt and 1 million shares outstanding. What is the best estimate of the stock's current intrinsic price?

Group of answer choices

$30.02

$37.48

$26.78

$28.52

$29.75