The Miracle Clean Company has some new products that it expects to lead to high growth in the near future. It has given analysts the following forecasts for the next three years:

The firm's debt has a current market value of $600,000 and it has $50,000 in marketable securities. There are 100,000 common shares outstanding. The expected tax rate is 35%, and the WACC is estimated to be 12%.
a. Calculate the free cash flow for each of the next three years.
b. After 2017 free cash flow growth is expected to slow to 8% per year permanently. What is the value of the stock today?
c. Without the new products, free cash flow in 2015 would be $63,000 and it would grow at 8% per year forever. What is the value of the stock if the new products aren't introduced?

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2015 2016 2017 Depreciation EBIT Investment in Operating Assets 20,2501 1 168,750 195,750 222, 28.350 195.750 34.000 36.450 222.750 15.00 4 47.000 は11