Question: Can you please provide the explanation, formula and correct answer for the problem above? CCV Inc. forecasts that its free cash flow in the coming

Can you please provide the explanation, formula and correct answer for

Can you please provide the explanation, formula and correct answer for the problem above?

CCV Inc. forecasts that its free cash flow in the coming year, i.e., at t=1, will be $0, but its FCF at t=2 and t=3 will be $15 million and $30 million respectively. After Year 3,FCF is expected to grow at a constant rate of 5% per year forever. The firm's weighted average cost of capital is 10%. The firm has a total amount of non-operating assets equal to $30 million. The firm has a total amount of debt equal to $150 million, and has 5 million common shares outstanding. what is the price per share based on the value-based management model? Select one: a. $81.44 b. $85.76 C. $83.21 d. $77.65 e. $79.54

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