Sarah is valuing a new division and has identified a comparable firm which has an expected return on equity of 10%, an expected return on debt of 4%, and a D/E ratio of 0.3. The asset cost of capital for the new division is 8.62% The division is expected to have a FCF of $6M one year from today. The yearly cashflows will increase by 3% per year, forever. Sarah intends on keeping a constant D/E ratio of 1.0 for the division. If the divisions debt yield is 4.5% and the corporate tax rate is 40%, what is the PV of the divisions FCFs?

Don't use excel or copy and paste old answers. Please show work. Thank you.