Roban Corporation is coniderin going public but is unsure ofa fair offering price for the compay. Before Hiring an investment banker to assist in making the public offering, managers at Roban decide to make their own estimate of the firm's common stock value. The firm's chief financial officer gathered the following data for performing the valuation using the free cash flow valuation model.

The firm's weighted average cost of capital is 12 percent. It has $1,400,000 of debt at market value and $500,000 of preferred stock at its assumed market value. The estimated free cash flows over the next five years, 2010 through 2014, are given belw. Beyond 2014 to infinity,the firm expects its free cash flow t grow by 4 percent annually.

Year Free Cash Flo

2010 $250,000

2011 290,000

2012 320,000

2013 360,000

2014 400,000

a. Estimate the value of Roban Corporation's entire company by using the free cash flow approach.

b. Use your finding in part (a), along with the data providd above, to find Roban Corporation's common stock value.

c. If the firm plans to issue 220,000 shares of common stock, what is its estimated value per share?