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Year 1 2 3 4 5 Free Cash Flow $25 million $28 million $32 million $36 million $41 million Home Industries is expected to generate

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Year 1 2 3 4 5 Free Cash Flow $25 million $28 million $32 million $36 million $41 million Home 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 10% and Home Industries has cash of $20 million, debt of $40 million, and 100 million shares outstanding, what is the expected current share price of Home Industries? Select one: a. $5.01 O b. $5.21 c. $5.41 od. $5.61 o e. $5.81

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