Assume you've forecasted and calculated the following Free Cash Flows to the Firm.

Year

FCFF

1 : $7,389

2: $8,993

3: $9,744

You have also made the assumption that after year 3, the company will grow by a rate of 2.8%.

Further suppose that the company has a current share price of $88.99 and a total of 4.5 million shares outstanding. The company currently has debt with a total face value of $891 million. These outstanding bonds are currently priced to yield 8.9% while quoting at 97% of total face value. The current t-bill rate is 1.1% and the market risk premium is 5.3%. We've estimated the to be 1.84. The marginal tax rate is 21%. Given this information, what is the value of this firm?

a. $189,971

b. $167,360

c. $156,307

d. $167,016