a)
Year 4 FCF = 58 (1 + 6%) = 61.48
Horizon value = FCF4 / required rate - growth rate
Horizon value = 61.48 / 0.14 - 0.06
Horizon value = 61.48 / 0.08
Horizon value = $768.50 million
b)
Firm's market value = -24 / (1 + 0.14)1 + 17 / (1 + 0.14)2 + 58 / (1 + 0.14)3 + 768.5 / (1 + 0.14)3
Firm's market value = $549.89 million
c)
Price per share = ($549.89 - $193.8) / 11
Price per share = $32.37
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