Worrall and Company,is considering going public but is unsure of a fair offering price for the company. Before hiring an investment banker to assist in making the public offering, managers at Englander have decided to make their own estimate of the firm's common stock value. The firm's CFO has gathered data for performing the valuating using the free cash flow valuation model.

The firm's weighted average cost of capital is 12%, and it has $2,750,000 of debt atmarket value and $850,000 of preferred stock at its assumed market value. The estimated free cash flows over the next 5 year, 2014 through 2018, are given below.Beyond 2018 to infinity, the firm expects its free cash flow to grow by 4% annually.

Year FCF

2014 $245,000

2015 295,000

2016 425,000

2017 477,000

2018 515,000

1. Estimate the value of Worrall's entire company by using the free cash flow valuation model.
2. Use your finding in part a, along with the data provided above, to find Wentz Industries' common stock value.
3. If the firm plans to issue 150,000 shares of common stock, what is its estimated value per share?