$P7-17($p$.322)$ Free cash flow valuation Nabor Industries is considering going public but is unsure of a fair offering price for the company. Before hiring an investment banker to assist in making the public offering, managers at Nabor have decided to make their own estimate of the firm's common stock value. The firm's CFO has gathered data for performing the valuation using the free cash flow valuation model.

The firm's weighted average cost of capital is $11\%,$ and it has $$1,500,000$ of debt and $$400,000$ of preferred stock in terms of market value. The estimated free cash flows over the next $5$ years, $2020$ through $2024,$ are given below. Beyond $2024$ to infinity, the firm expects its free cash flow to grow by $3\%$ annually.

$\backslash$table$[[$Year$,$Free Cash Flow $($FCF$)],[2020,$$$200,000$