Question: It is the end of year 2021. A company XYZ has projected free cash flow to equity $10, $20, $22 per share at the end

It is the end of year 2021. A company XYZ has projected free cash flow to equity $10, $20, $22 per share at the end of year 2022, 2023 and 2024. Projected growth rate after year 2023 will be stabilized at 10%. Meanwhile, risk-free rate is 2% and risk premium of stock XYZ is 10% with a beta of 1.4. What is your valuation estimation of stock XYZ using free cash flow model?

A. 113

B. 166.71

C. 153.69

D. 77.19

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