Suppose that a firm's free cashflows for next 4 years are estimated as: $ 3million, $6 million, $8 million, and $16 million.

After the fourth year, the free cash flow is projected to grow at a constant rate of 3%.

Also, assume: WACC is estiamted as 9%, the market value of debt is $75 million, and there are 7.5 million shres of common sock outstanding.

a. Estimate the present value of the free cash flows projected during the next 4 years.

b. Estimate the firm's horizon value using a constant growth model.

c. Estimate the market values of this firm and equity (common stock).

d. Esitmate the stock price (intrinsic value) of this firm.