1. According to the value-based management model, what is the stock price per share given the following data?

Year		1
Revenue		850.00
Fixed costs		100.00
Variable costs		280.00
Additional investment in NWC		3.00
Additional investment in operating long-term assets		80.00
Depreciation		75.00
Tax rate	0.40

The free cash flow is expected to grow at 10% per year from year 1 to year 5 and 6% per year after year 5 to infinity.

WACCcomp =12%.

Market value of the firm:
	Price per share	Number of shares	Market value
Long-term debt			700.00
Preferred stock	7.00	10	70.00
Common stock, equity	15.00	100	1,500.00
Total			2,270.00

Market value of non-operating short-term assets=50

Market value of non-operating long-term assets=80

Select one:

a. $37.07

b. $24.97

c. $30.21

d. $34.28

e. $27.54