Quantitative Problem $2$: Hadley Inc. forecasts the year$-$end free cash flows $($in millions$)$ shown below.

The weighted average cost of capital is $9\%,$ and the FCFs are expected to continue growing at a $4\%$ rate after Year $5.$ The firm has $$24$ million of market$-$value debt, but it has no preferred stock or any

other outstanding claims. There are $20$ million shares outstanding. What is the value of the stock price today $($Year $0)?$ Do not round intermediate calculations. Round your answer to the nearest cent.

$ per share

According to the valuation models developed in this chapter, the value that an investor assigns to a share of stock is dependent on the length of time the investor plans to hold the stock.

The statement above is