Assume that today is December 31, 2018, and that the following information applies to Abner Airlines: After-tax...

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Assume that today is December 31, 2018, and that the followinginformation applies to Abner Airlines:
After-tax operating income [EBIT(1 - T)] for 2019 is expected tobe $550 million.
The depreciation expense for 2019 is expected to be $50million.
The capital expenditures for 2019 are expected to be $475million.
No change is expected in net operating working capital.
The free cash flow is expected to grow at a constant rate of 7%per year.
The required return on equity is 16%. The WACC is 11%.
The firm has $202 million of non-operating assets.
The market value of the company's debt is $3.183 billion.
200 million shares of stock are outstanding.
Using the corporate valuation model approach, what should be thecompany's stock price today? Do not round intermediatecalculations. Round your answer to the nearest cent.

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After tax operating income EBIT1T 550 million Depreciation 50 million Capital expenditure 475 Change in net operating working capital 0 Free cash flow to firm for 2019 FCFF EBIT1T depreciation capital See Answer

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Assume that today is December 31, 2018, and that the followinginformation applies to Abner Airlines:After-tax operating income [EBIT(1 - T)] for 2019 is expected tobe $550 million.The depreciation expense for 2019 is expected to be $50million.The capital expenditures for 2019 are expected to be $475million.No change is expected in net operating working capital.The free cash flow is expected to grow at a constant rate of 7%per year.The required return on equity is 16%. The WACC is 11%.The firm has $202 million of non-operating assets.The market value of the company's debt is $3.183 billion.200 million shares of stock are outstanding.Using the corporate valuation model approach, what should be thecompany's stock price today? Do not round intermediatecalculations. Round your answer to the nearest cent.