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Carmax Inc. has generates annual free cash flow of $2,096 million. The firm current has $1,823...

Carmax Inc. has generates annual free cash flow of $2,096 million. The firm current has $1,823 million in long and short-term debt, $259 million in marketable securities, and the current market value of preferred stock is $767 million. Carmax expects their cash flow to grow 25% and 10% during the next two years. The fi rm then anticipates a constant FCF growth rate of 9%. If the fi rm has a WACC of 18% and 364 million shares outstanding, what is the intrinsic value of equity per share?

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