The Nevada inc. is a family owned private firm that is operating in life insurance and property &liability insurance sectors. The life insurance division constitutes 25% of the firm, and property & liability insurance division constitutes 75% of the firm The firm's current free cash flow is S 100,000. FCFs are expected to grow 10%, 896, 906, and 964 for next four years. After year 4 growth will become constant at a rate of 3% forever. Nevada Inc.'s total debt is S80.000 and total equity is $200,000. The firm's interest expense is $8,000 and tax rate is 40%. Alex wants to become the sole owner of the company by buying all the shares from other family members. Using non-constant FCF valuation model, determine the price Alex should pay per each share. Assume market risk premium 7% and long-term government bond rate is 6%. Family members hold 5000 shares of the firm. Publicly traded life insurance firms Publicly traded property and liability insurance firms ABC 50 150 40 1.40 CDE 60 120 40 1.60 TRY Debt ($1000) Equity (S1000) Tax (%) Beta EXM 40 80 40 1.20 20 40 1.30