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Suppose Bon Temps embarked on an aggressive expansion that requires additional capital. Management decided to finance the expansion by borrowing $40 million and by halting

Suppose Bon Temps embarked on an aggressive expansion that requires additional capital. Management decided to finance the expansion by borrowing $40 million and by halting dividend payments to increase retained earnings. Its WACC is now 7%, and the projected free cash flows for the next three years are -$5 million, $10 million, and $20 million. After Year 3, free cash flow is projected to grow at a constant 5%, What is Bon Temps total value? it if has 10 million shares of stock and $40 million of debt and preferred stock combined, what is the price per share?

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