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Our acquisition target is a privately held company in a growing industry. The target has recently...

Our acquisition target is a privately held company in a growing industry. The target has recently borrowed $100 million to finance its expansion; it has no other debt or preferred stock. It pays no dividends and currently has no marketable securities. We expect the company to produce free cash flows of -$10 million in one year, $30 million in two years, and $36 million in three years. After three years, free cash flow will grow at a rate of 5%. Its WACC is 15% and it currently has 5 million shares of stock. Find price per share.

28.96

42.33

37.24

32.74

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Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

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