Question: Please solve Please use the following information for the next five questions. Reeve Company is a privately held company in a growing industry. The company

Please solve Please solve Please use the following information for the next five questions.

Please use the following information for the next five questions. Reeve Company is a privately held company in a growing industry. The company is expected to produce free cash flows of $15 million in one year, \$20 million in two years, and $28 million in three years. After three years, free cash flow will grow at a rate of 3%. The company's balance sheet shows $80 million in accounts receivable, $60 million in inventory, and $100 million in short-term investments that are unrelated to operations. The balance sheet also shows $90 million in accounts payable, $80 million in notes payable, $100 million in long-term debt, $50 million in preferred stock, $180 million in retained earnings, and $800 million in total common equity. The company also paid $30 million interest expenses. Its WACC is 10% and it currently has 10 million shares of stock. Based on the corporate valuation model, what is the best estimate of the stock's price per share in millions? 1) $36.30 2) $18.16 3) $23.07 4) $17.43 5) $12.43

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