1. Suppose that you are analyzing a stock to determine its intrinsic value. You went to the company's website to find an announcement about an expansion plan. The announcement states that the management has decided to borrow $25 million that costs 5% (the WACC) to fund the expansion. The management projects that the expansion will generate the following free cash flows for the next 3 years -$2 million, $8 million, and $15 million. After Year 3, free cash flow is projected to grow at a constant 3%.

A. What is the firm's market value (total value)?

B. If the firm has $20 million of debt, what is the market value (MV) of equity?

C. If the firm has 5 million shares of stock, what is the value (price) per share?