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A company is projected to have a free cash flow of $346 million next year,...

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Finance

A company is projected to have a free cash flow of $346 million next year, growing at a 6% rate until the end of year 3. After that, cash flows are expected to grow at a stable rate of 2.3% in perpetuity. The company's cost of capital is 9.4%. The company owes $92 million to lenders and has $16 million in cash. If it has 196 million shares outstanding, what is your estimate for its stock price? Round to one decimal place. (e.g., $4.32 = 4.3)

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