The Insincerity Company expects free cash flow of $4.5 million, $7.3 million, and $7.9 million in the next three fiscal years (the first cash flow being exactly one year from now). After that, free cash flow growth in years 4 8 will be at the compound annual growth rate of cash flow from years 1 3, and then slow to just 2.5% per annum (forever). If the firm has a current debt load of $19 million, a WACC of 12%, and 2.9 million shares outstanding, what is each share worth?

Joes Party Supply, Inc., currently has debt outstanding with a market and book value of $53 million and a yield to maturity of 5.7%. The company has an optimal (market value) debt-toequity ratio of 0.92, and the required return on equity is 14%. EBIT for Joes next year is projected to be $12.5 million, and is expected to grow at 7% per year for the next four years before slowing to 2.5% growth in perpetuity. Change in net working capital, capital spending (capex), and depreciation as a percentage of EBIT are expected to be 10%, 12%, and 8%, respectively, in perpetuity. Joes tax rate (applicable to EBIT) is 38%. Joes has 1.85 million shares outstanding: what is each one worth?