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 $100,000. FCFs are expected to grow 10%, 8%, %6, and %4 for next four years. After year 4 growth will become constant at a rate of 3% forever. Nevada Inc.'s total debt is SS0000 and total equity is S200.000 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 Debt ($1000) Equity ($1000) Tax (% Beta ABC 50 150 40 140 CDE 60 120 40 1.60 EXM 40 80 40 1.20 TRY 20 60 40 1.30