Question: Chapter 10 - Q3: Please answer the following question in the image below. There may be multiple answers as noted by the empty boxes. Thank

Chapter 10 - Q3: Please answer the following question in the image below. There may be multiple answers as noted by the empty boxes. Thank you!

Chapter 10 - Q3: Please answer the following question in the image

Portage Bay Enterprises has $1 million in excess cash, no debt, and is expected to have free cash flow of $14 million next year. Its FCF is then expected to grow at a rate of 2% per year forever. If Portage Bay's equity cost of capital is 9% and it has 6 million shares outstanding, what should be the price of Portage Bay stock? The price of Portage Bay's stock is $ per share. (Round to the nearest cent.)

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