Quantitative Problem $2$: Hadley Inc. forecasts the year$-$end free cash

flows $($in millions$)$ shown below.

The weighted average cost of capital is $12\%,$ and the FCFs are expected to

continue growing at a $5\%$ rate after Year $5.$ The firm has $$25$ million of

market$-$value debt, but it has no preferred stock or any other outstanding

claims. There are $19$ million shares outstanding. What is the value of the

stock price today $($Year $0)?$ Round your answer to the nearest cent. Do not

round intermediate calculations.

$

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 isHadley Inc. forecasts the year$-$end free cash flows $($in millions$)$ shown below.

Year $12345$

FCF $-$$$22\mathrm{.}97$ $$38\mathrm{.}3$ $$43$ $$51$ $$56$

The weighted average cost of capital is $12\%,$ and the FCFs are expected to continue growing at a $5\%$ rate after Year $5.$ The firm has $$25$ million of market$-$value debt, but it has no preferred stock or any other outstanding claims. There are $19$ million shares outstanding. What is the value of the stock price today $($Year $0)?$ Round your answer to the nearest cent. Do not round intermediate calculations.

$

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