PR $9-6($Static$)($LO $9\mathrm{.}3,9\mathrm{.}4)$ Determine the intrinsic price per share of common stock.

$6\mathrm{.}66$

points

Determine the intrinsic price per share of common stock. The forecast period is $5$ years spanning fiscal years ending December $31,2024,$ through December $31,2028.$ The cost of equity is $12$ percent, long$-$term growth rate $(g)$ is $2$ percent, and the valuation date is January $1,2024.$

Remember that the present value formulas assume that free cash flows are completely realized at the end of each fiscal year $($December $31)$ and the valuation date is at the beginning of the first fiscal year $($January $1,2024).$

The $5$ years of the forecast period show free cash flows growing by $$3$ from $$73$ in the first period to $$85$ in the fifth period. Thereafter, free cash flows are assumed to grow by $2$ percent per year forever.

Required:

Answer the following question based, on the details provided.

$\backslash$table$[[$Question$,$Answer$],[\backslash$table$[[$a$.$ Given these expectations of future performance, what would be the$],[$intrinsic price per share of common stock?$],[$Note: Round your answer to $2$ decimal places.$]$