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Based on the following information, what is the stock price per share according to the equity free cash flow model?

Year 0 1

Revenue 600.00

Fixed costs 100.00

Variable costs 200.00

Add. investment in NWC 10.00

Add. investment in operating long-term assets 70.00

Depreciation 60.00

Interest expenses 35.00

Newly issued debt 25.00

Principle repayments 15.00

Market value of the firm: Price per share Number of shares Market Value

Short-term debt 100.00

Long-term debt 600.00

Preferred stock 10 10 100.00

Common stock 18.00 100 1,800.00

Total 2,600.00

Cost of equity (Rs) 0.1500

Tax rate 0.40

Growth rate per year:

From year 1 through year 5 0.10

After year 5 0.07

Select one:

a. $14.32

b. $16.55

c. $12.02

d. $13.59

e. $15.51