Answer:
the three next cash flows are missing, so I looked for similar questions and found:
- FCF1 = $20 million
- FCF2 = $25 million
- FCF3 = $30 million
in order to determine the company's value, we must first determine the horizon value in 3 years:
horizon value in year 3 = [$30 million x (1 + 5%)] / (11% - 5%) = $31.50 million / 6% = $525 million
the current value of the firm = $20/1.11 + $25/1.11² + $30/1.11² + $525/1.11³ = $18.02 + $20.29 + $21.94 + $383.88 = $444.13 million
the value of equity = $444.13 - $112.60 = $331.53 million
price per stock = $331.53 million / 25 million = $13.26 per stock