SCENARIO 9-2An analyst has put together the following spreadsheet to estimate the intrinsic value of the stock of Rangan Company (in millions of dollars):

	t = 1	t = 2	t = 3
Sales	$3,000	$3,600	$4,500
NOPAT	500	600	750
Net investment in operating capital*	300	400	500

*Net investment in operating capital = Capital expenditures + Changes in net operating capital -Depreciation.After Year 3 (t = 3), assume that the company's free cash flow will grow at a constant rate of 7% a year and the company's WACC equals 11%. The market value of the company's debt and preferred stock is $700 million. The company has 100 million outstanding shares of common stock.

Using the free cash flow model, what is the intrinsic value of the company's stock today?