Your employer, a mid-sized human resources management company, is considering expansion into related fields, including the acquisition of Temp Force Company, an employment agency that supplies word processor operators and computer programmers to businesses with temporary heavy workloads. your employer is also considering the purchase of Biggerstaff & McDonald, a privately held company owned by two friends, each with 5 million shares of stock. You have just learned that B&M has undertaken a major expansion that will change its expected free cash flows to -$10 million in 1 year, $20 million in 2 years, and $35 million in 3 years. after 3 years, free cash flow will grow at a rate of 5%. No new debt or preferred stock was added; the investment was financed by equity from the owners. Assume the WACC is unchanged at 11% and that there are still 10 million shares of stock outstanding.

1) What is the company's horizon value (i.e., its value of operations at Year 3)? what is its current value of operations (i.e.,at Time 0)?

2) What is its estimated intrinsic value of equity on a price-per-share basis?