You are trying to estimate the share price for Heavyweight Inc. Heavyweight currently has 40 million shares outstanding, a cost or equity of 20%, a cost of debt of 5%, and a marginal tax rate of 20%. The firm has no excess cash and maintains a debt-to-enterprise value ratio of 55%. It is expected to generate free cash flows of $150 million at the end of the year and free cash flows are expected to grow at an annual rate of 2% in perpetuity. Given this information, and using the WACC method, what is the best estimate for Heavyweight's share price? Select one.

I.

$18.34

II.

$17.31

III.

$22.42

IV.

$16.49