Your employer, a midsized human resources management company, is considering expansion into related fields, including the purchase of Biggerstaff & McDonand $($B&M$),$ a privately held company owned by two friends, each with $5$ million shares of stock. B&M currently has free cash flow of $$24$ million, which is expected to grow at a constant rate of $5\%.$ B&M$$s financial statements report short$-$term investments of $$100$ million, debt of $$200$ million, and preferred stock of $$50$ million. B&M$$s weighted average cost of capital $($WACC$)$ is $11\%.$

You have just learned that B&M has undertaken a major expansion that will change its expected free cash flows to $-$$$10$ million in $1$ year, $$20$ million in $2$ years, and $$35$ million in $3$ years. After $3$ years, free cash flow will grow at a rate of $5\%.$ No new debt or preferred stock was added; the investment was financed by equity from the owners. Assume the WACC is unchanged at $11\%$ and that there are still $10$ million shares of stock outstanding.

$1.$ Calculate the company$$s horizon value $($i$.$e$.,$ its value of operations at Year $3).$

$2.$ What is the estimated intrinsic value of equity on a price$-$per$-$share basis?