T&C Enterprises has free cash flows today, FCF₀, of $150 million. The firms WACC is 10%. The firm has debt of $120 million, and 100 million outstanding shares.

a) Assume T&Cs free cash flows will grow at constant rate of 5% annually. Using the Corporate Value model, what is the firms expected price per share today?

b) Now assume that T&Cs free cash flows will grow 30% the first year, 20% the second year, 10% the third year, followed by a constant rate of 5% thereafter. Under this scenario, what is the firms expected price per share today,P₀?