Year

1

2

3

4

5

6

FCF for

common

equity holders

$412

478

636

827

950

1

,

284

At the beginning of

Year

1

,

Sunglass company shows its FCFs for the common equity hold

ers as

above. Starting from

Year 6

, the FCF will grow at a constant rate of 4%.

The cost of equity is

8.5%. Common shares outstanding is 1,512.

Calculate the value per share of the company.