Year	1	2	3	4	grow by 3% per year
FCF	1212	1414	1515	1616

Covan has 6 million shares outstanding, $4 million in excess cash, and it has no debt. If its cost of capital is 10 % ,

what should be its stock price? b. Covan reinvests all its FCF and has no plans to add debt or change its cash holdings (it does not invest its cash holdings). If you plan to sell Covan at the beginning of year 2, what is its expected price? c. Assume you bought Covan stock at the beginning of year 1. What is your expected return from holding Covan stock until year 2?