how do you get the expected share price?

Please use the following information to answer both questions in this practice quiz. Year 2 3 4. Free Cash Flow $12 million $18 million $22 million $26 million Suppose Flame Boiler is expected to generate the above free cash flows over the next four years, after which the company is expected to grow at a rate of 5% per year. If the weighted average cost of capital is 12% and Flame Boiler has cash of $ 80 million, debt of $60 million, and 30 million shares outstanding a) What is Flame Boiler's terminal value? Answer: 390 Terminal value here is the terminal enterprise value in year 4. Terminal value here is the terminal enterprise value in year 4. The correct answer is: 390 Use the information from the previous question and answer: b) What should Flame Boiler's expected share price be? Answer: 3.27 The correct answer is: 10.84