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 required rate of return for equity is 18.97%.

Based on the 2021 financial statements, you calculate Free Cash Flow to the Firm in 2021 to have been $68,000, and you believe that this will grow at 3.9% in perpetuity. The firm has just announced a restructure of its debt financing, As a result, the value of the firm's debt is now $356,000. This will change the firm's WACC. The WACC you calculated in the previous question was the historical WACC, but from now on the WACC will be 11% and this should be used for all valuation purposes. What is the value of the firm using a Free Cash Flow Discount Model?

a. $872246

b. $957746

c. $935099

d. $995099