INPUTS (In Millions)	Year
	Current	Projected
	0	1	2	3	4
Free cash flow		-$15.0	$15.0	$70.0	$74.2
Marketable securities	$	30
Notes payable	$	100
Long-term bonds	$	400
Preferred stock	$	50
WACC		10.00	%
Number of shares of stock		10

1. Calculate the estimated horizon value (i.e., the value of operations at the end of the forecast period immediately after the Year-4 free cash flow). Assume growth becomes constant after Year 3. Enter your answer in millions. For example, an answer of $1.23 million should be entered as 1.23, not 1,230,000. Round your answer to two decimal places. $

Calculate the present value of the horizon value, the present value of the free cash flows, and the estimated Year-0 value of operations. Enter your answers in millions. For example, an answer of $1.23 million should be entered as 1.23, not 1,230,000. Round your answers to two decimal places.

Present value of HV	$
Present value of FCF
Value of operations	$

Calculate the estimated Year-0 price per share of common equity. Round your answer to the nearest cent. $