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River Enterprises has $501 million in debt and 20 million shares of equity outstanding. Its...

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Accounting

River Enterprises has $501 million in debt and 20 million shares of equity outstanding. Its excess cash reserves are $15 million. They are expected to generate $209 million in free cash flows next year with a growth rate of 2% per year in perpetuity. River Enterprises' cost of equity capital is 13%. After analyzing the company, you believe that the growth rate should be 3% instead of 2%. If the growth rate is 3%, the price per share is YYY(Round to the nearest cent.)
81.20
80.20
None of the answers mentioned
79.20
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