Kale inc forecasts the free cash flows in millions as, Ask an Expert

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Kale Inc. forecasts the free cash flows (in millions) as follows. FCF1 = -$40 an FCF2 = $80. If the weighted average cost of capital (WACC) is 12.0% and FCF is expected to grow at a rate of 6.0% after Year 2, what is the firm's total corporate value, in millions? The company's balance sheet shows $100 million of notes payable, $250 million of long-term debt, $70 million of preferred stock, $180 million of retained earnings. If the company has 35 million shares of stock outstanding, what is the best estiate of its price per share?

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