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Year 1 2 3 4 5 Free Cash Flow $22 million $26 million $29 million $30 million $32 million General Industries is expected to generate

Year 1 2 3 4 5
Free Cash Flow $22 million $26 million $29 million $30 million $32 million

General Industries is expected to generate the above free cash flows over the next five years, after which free cash flows are expected to grow at a rate of 4% per year. If the weighted average cost of capital is 9% and General Industries has cash of $15 million, debt of $45 million, and 80 million shares outstanding, what is General Industries' current Enterprise Value?

a.

$622.45 million

b.

$545.94 million

c.

$539.11 million

d.

$607.37 million

e.

$652.45 million

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