Steve Company is a small manufacturer of machine tools. It's stock is trading publicly with a most recent closing price of $65 per share. There are 1 million common shares outstanding. No preferred shares. Mr. Steve may want to sell his company. What minimum price should he realistically request from a buyer? Use a straight DCF analysis based on the following information: All amounts in thousands Conservative estimate of free cash flow Terminal Value Total free cash flow Relevant Information: 2020 2021e 2022e $2,000 $2,300 2023e $2,600 2024e $2,900 2025e $3,200 Terminal Growth rate 4% Credit rating of Steve Company debt Baa (yielding 8.6% = Steve's pretax cost of debt) Beta 1.3 20 year US Treasury Bond Yield Equity Market risk premium Tax Rate Book value of shareholders Equity = Total debt on Books 5.20% 5.30% 40% $25,000 $15,000