(Please use a math, finance equation and/ or formula. DONT USE A SHEET CHART, EXCEL, OR GRAPH)

17)

Part A: ACME Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows (FCFs) during the next 5 years [-25,-10,5,15,25] (in millions), after which FCF is expected to grow at a constant 6% rate. ACME WACC is 10%. Assume that ACME has zero non-operating assets. ACME has $80 million in debt and preferred stock and currently 18 million shares are outstanding. What is the firms stock price? (Note, this is the same information as in the previous problem).

$19.97

$19.12

$18.84

$18.33

$19.36

Part B: Now assume that ACME company has $40 million in non-operating assets. What is the new stock price for ACME Company?

$22.55

$21.87

$21.34

$20.55

$20.99