Walkerville has $8 million in excess cash and $1.5 million in debt. The company is expected to have free cash flow of $26 million in 2020 and $30 million in 2021. Beyond 2021, free cash flow is expected to grow at a constant rate of 2% per year forever. Walkervilles weighted average cost of capital (WACC) is 11% and it has 8 million shares outstanding.

a. What is the current enterprise value of Walkerville Woodworking given the above assumptions?

b. What should be the price of one share of Walkerville stock?