Use the following information for the next 3 questions:

Beach Waves Inc. estimates their future free cash flows as followed: Year 1: $4,000; Year 2: $6,000; Year 3: $9,000; and they expect a 5% growth rate beyond year 3. If the cost of capital is 11%:

What is the terminal value in Year 3 ?

	$150,000
	$157,500
	$120,281
	$133,740

What is total current company value?

	$130,217
	$112,844
	$96,422
	$118,152

What is a fair stock price per share (P0) of Beach Waves if they have $80,000 in debt and 2,400 shares outstanding?

	$12.69
	$20.92
	$6.84
	$15.80