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The forecast for Discomforts free cash flows for next year is provided in the table. Assume that free cash flow is paid at the end

The forecast for Discomforts free cash flows for next year is provided in the table. Assume that free cash flow is paid at the end of each year and we are at the beginning of a year. Last years values are for the year end yesterday. Analysts expect Discomforts cash flow to remain constant at next years level in perpetuity. The WACC for Discomfort is 8%. What is the fair price for Discomforts shares today?

Selected Financial Information

Discomfort Inc.

($000s)

Last Year

Next Year

Sales

743,203

934,978

Depreciation

13,543

20,401

EBIT

90,453

119,787

Tax Rate, T

34.8%

34.8%

Net Working Capital

-64200

-61662

Net Property and Equipment

43,850

79,356

Long-Term Debt

14,216

15,263

Shares Outstanding

20,000

20,000

Round your answer to the nearest cent.

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