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The common stock of Etar Company currently sells for $ 3 2 . 5 0 per share. In an attempt to determine whether Etar Company

The common stock of Etar Company currently sells for $32.50 per share. In an attempt to determine whether Etar Company is fairly priced, you have assembled the following information:
- The before-tax required rates of return on Etar debt, preferred stock and common stock are, respectively, 7.0%,6.8%, and 11.0%.
- The company's target capital structure is 30% debt, 15% preferred stock, and 55% common stock.
- The market value of the company's debt is $145 million, and its preferred stock is valued at $65 million.
- Etar's FCFF for the year just ended is $30 million. FCFF is expected to grow at a constant rate of 4.5% for the foreseeable future.
- The tax rate is 32%.
- Etar has 7 million outstanding common shares.
What is Etar's estimated common stock value per share?
Group of answer choices
$82.02
$98.55
$64.29
$55.82
$76.00

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