The most recent free cash flow (FCF) for Golden Enterprises was $200 million, and the management expects the free cash flow to begin growing immediately at a 7% constant rate. The cost of capital is 12%.

i. Using the constant growth model, determine the value of operations for Golden Enterprises Inc.

Golden Enterprises Inc. balance sheet shows that it has $10 million short-term investments, $15 million in notes payable, $60 million in long-term bonds, and $15 million in preferred stock. Golden Enterprises has 60 million of shares outstanding. Calculate the following:

ii. total intrinsic value for Golden Enterprises Inc.

iii. intrinsic value of equity for Golden Enterprises Inc.

iv. intrinsic stock price per share for Golden Enterprises Inc.