Taussig Technologies Corporation stock has been proposed, it has been suggested that the free cashflows method will be used by discounted cash flow. The firms has just introduced a new line of products that has been wildly successful. The projected income statements resulted in the following free cash flow projection (in millions) Table 1 Year 1 2 3 4 5 Cash flow $5.5 $12.1 $23.8 $44.1 $69.0 In addition, the firm estimates WACC to 9 percent, and anticipate that free cash flow will grow at a constant rate of 6 percent. Market value of Debt is $850 million and there are $20 million shares of Common stock outstanding.

Notes:

1. What is the present value of free cash flow during the next 4 years?

2. What is the companys terminal value? 3. What is the total value of the company? 4. What is the Barrets price per share?