(Solved): 11. Boomer Inc.'s free cash flow (FCF) for next year is expected to be $23 million. FCFs are expec ...

11. Boomer Inc.'s free cash flow (FCF) for next year is expected to be $\$23$ million. FCFs are expected to grow at a rate of $4\%$ forever. It also has the following financial information: Market value of Boomer's Debt $=\$320$ million Short-term investments $=\$60$ million - Book value of equity $=\$290$ million - Total Assets $=\$265$ million - Shares outstanding $=3.1$ million - Required return on stock $=11\%$ $\frac{23}{(0.1?006)}$ - $\mathrm{WACC}=10\%$ 383.33 Calculate Boomer's intrinsic equity value per share. a. $\$32.88$ b. $\$39.78$ 443.33