You just completed a DCF valuation on a company as follows:

PV of FCF $$100$ million

Less: Debt of $$40$ million

Value of Equity $$60$ million

Number of Shares Outstanding $10$ million

Estimated Price Per Share $$6$

You now realize you forgot to include in your analysis the $1\mathrm{.}9$ million options with an exercise price of $$3\mathrm{.}50.$

What is your estimate of the value of the stock after incorporating the options in your analysis? Express your answer to two decimal places i$.$e$.$ $$7\mathrm{.}12$ should be expressed as $7\mathrm{.}12$

Answer is $5\mathrm{.}60,$ Please walk me through the calculations