A Company Is Expected to Have Free Cash Flows of $0.75

Multiple Choice

A company is expected to have free cash flows of $0.75 million next year.The weighted average cost of capital is WACC = 10.5%, and the expected constant growth rate is g = 6.4%.The company has $2 million in short-term investments, $2 million in debt, and 1 million shares.What is the stock's current intrinsic stock price?

A) $17.39
B) $17.84
C) $18.29
D) $18.75
E) $19.22