Use the below information to value a mature levered company with growing annual perpetual cash flows and a constant debt-to-assets ratio. The next cash flow will be generated in one year from now, so a perpetuity can be used to value this firm. The firm's debt funding comprises annual fixed coupon bonds that all have the same seniority and coupon rate. When these bonds mature, new bonds will be re-issued, and so on in perpetuity. The yield curve is flat.

Data on a Levered Firm with Perpetual Cash Flows
Item abbreviation	Value	Item full name
OFCF1	$109.2m	Operating free cash flow at time 1
EFCF1	$98.4m	Equity free cash flow at time 1
g	3% pa	Growth rate of OFCF, FFCF, EFCF and Debt cash flow
WACCBeforeTax	8.9% pa	Weighted average cost of capital before tax
rD	5% pa	Bond yield
rE	44% pa	Cost or required return of levered equity
D/V	90% pa	Debt to assets ratio, where the asset value includes tax shields
nShares	21m	Number of shares
tc	30%	Corporate tax rate

The firms current share price is:

Select one:

a. $11.4286

b. $14.7215

c. $26.1501

d. $52.6485

e. $88.1356