You are interested in getting into the retail sporting goods business. You know of a store that has Free Cash Flow to the Firm projected at $250,000 for next year. This cash flow amount is expected to grow by 2% at the end of year 2 and every year thereafter. The appropriate risk adjusted discount rate is 10% and there are one million shares outstanding. What is the value per share?

Select one:

a. $2.09

b. $5.75

c. $2.78

d. $3.13