a)
Year 4 FCF = 35 (1 + 5%) = 36.75
Horizon value = FCF4 / required rate - growth rate
Horizon value = 36.75 / 0.11 - 0.05
Horizon value = 36.75 / 0.06
Horizon value = $612.50 million
b)
Firm's market value = -21 / (1 + 0.11)1 + 22 / (1 + 0.11)2 + 35 / (1 + 0.11)3 + 612.50 / (1 + 0.11)3
Firm's market value = $472.38 million
c)
Price per share = ($472.38 - $182.7) / 12
Price per share = $24.14
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