The information below will be for the next TWO questions.

A major pension fund in interested in purchasing Z Industries' stock.The treasurer of the pension fund has done a great deal of research on the company and realizes that its valuation must be based on the total company model.The pension fund's treasurer has estimated Z Industries free cash flow for the next 3 years as follows:$1 million, $3 million, and $5 million, respectively.After the third year, free cash flow is projected to grow at a constant 2 percent.The company's WACC is 10 percent; it has $25 million of total debt and preferred stock, and 2 million shares of common stock.

What is the total value of the firm?

65,476,098

$55,041,322

$124,760,923

$24,756,439

A major pension fund in interested in purchasing Z Industries' stock.The treasurer of the pension fund has done a great deal of research on the company and realizes that its valuation must be based on the total company model.The pension fund's treasurer has estimated Z Industries free cash flow for the next 3 years as follows:$1 million, $3 million, and $5 million, respectively.After the third year, free cash flow is projected to grow at a constant 2 percent.The company's WACC is 10 percent; it has $25 million of total debt and preferred stock, and 2 million shares of common stock.

What is the price of the company's stock?

$15.02

$6,36

$9.06

$21.75