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Happiness Corp. ("Happy") is a manufacturer of stress relief products that improve mental health. Given the recent success of IPOs, Happy is looking to take itself public and is trying to figure out what the price per share should be. Based on the information below, please complete discounted cash flow analysis to determine the appropriate price per share of Happy:

Revenue is expected to be $101.5 million in the 2019 (year 1) and grow 20% in 2020, 16% in 2021, 12% in 2022 and 10% in the last year.

Variable cost is expected to be 50% of revenue.

Fixed cost (excluding depreciation) is expected to be $32,000,000 each year.

Depreciation expense is expected to be $8,000,000 each year.

Maintenance capex is expected to be $6,000,000 each year.

Net working capital was $9,000,000 in 2018 and is expected to be $11,000,000 in 2019, and grow at the same rate as revenue thereafter.

Taxes are projected to be 20%.

This company will, hopefully, continue forever. Assume the long-term perpetual growth rate is 4%.

Additionally, here is a summary of the capital structure for North Pole Enterprises, Inc.:

Capitalization Table

Senior Notes

$ 20,000,000 = book value

$ 990 = price per share

20,000 = units outstanding

6.5% = annual coupon rate

5 = Term

Common stock

$ 50,000,000 = book value

$ 20 = price per share

10,000,000 = units outstanding

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Other info:

Beta : 1.70

Treasury bills yield: 3.0%

E(r) on market: 10.0%

Based on the DCF, what is the Happy's implied stock price?

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