You are trying to estimate the intrinsic value of the shares of Flying High Ltd, a manufacturer of unmanned aerial vehicles, or drones. The company is headquartered in Melbourne, and sells its drones throughout Australia and New Zealand. It is a public company, but is not yet listed on the stock exchange. There are 30,000 shares outstanding.

The following information is unchanged from the previous question:

- The value of the firm's debt is now $356,000. The firm's WACC will be 11% for all valuation purposes.

- The firm's Free Cash Flow to the Firm in 2020 was $68,000.

- This is expected to grow at 3.9% in perpetuity.

1- What is the value of equity using a Free Cash Flow Discount Model?

a. $639099

b. $579099

c. $601746

d. $516246

2- What is the estimated share price using a Free Cash Flow Discount Model?

a.

$20.06

b.

$21.70

c.

$21.30

d.

$19.49