The free cash flows (in millions) shown below are forecasted by Simmons Inc. The weighted average cost of capital is 13% and the cost of equity is 15%. The free cash flows are expected to continue growing at the same rate after Year 3 as from Year 2 to Year 3. The current year's balance sheet shows that the. marketable securities are worth $20 million, accounts payable is $50 million, notes payable is $10 million, accruals are $25 million, long-term debt is $125 million, preferred stock is $50 million, and common stock is $250 million. The firm has 10 million shares outstanding. What is the best estimate of the current stock price?

Year 1 2 3

FCF -$20 $42. $45

a. $25

b. $63.69

c. $37.69

d. $28.24

e. $45.19