Ward Pharmaceuticals is expected to generate free cash flow (FCF) of $150 million this year (FCF1 = $150 million), and FCF is expected to grow at a rate of 20% over the following two years (FCF2 and FCF3). After the third year, however, FCF is expected to grow at a constant rate of 5% per year, forever (FCF4).

1) If Ward's weighted average cost of capital (WACC) is 10.9%, what is Ward's current total firm value?

2) Ward's debt has a market value of $1,800 million and Ward has no preferred stock. If Ward has 80 million shares of common stock outstanding, what is Ward's estimated intrinsic value per share of common stock?