In $2017,$ BMC Software generated $$465$ M of operating income $($earnings

before interest and taxes$)$ and $$295$ M of net income from $$2,200$ M of

sales. Over the next two years $(2018$ and $2019),$ the firm is projecting $10\%$

growth in operating income and $5\%$ growth in depreciation expense.

Beginning in $2020,$ BMC estimates that free cash flows will grow $2\%.$

Assume the firm's effective tax rate is $30\%,$ weighted average cost of

capital is $9\%,$ and number of shares outstanding is $146M.$ Depreciation

expense for $2017$ was $$105M$ while capital expenditures were $$55M.$

Capital expenditures are expected to remain constant over the next $5$

years. BMC expects working capital needs to increase by $$20M$ per year.

Lastly, the firm has $$250M$ in cash and cash equilavents and $$750M$ of

interest bearing

Using DCF approach $,$ Which is the best estimate of BMC software Equity per share in $2018?(1)39\mathrm{.}10$ per share $(2)42\mathrm{.}53$ per share $(3)36\mathrm{.}37$ per share $(4)29\mathrm{.}33$ per share $($ Note Using FCF for $2019$ and Terminal value for $2019$ like question $2)$