Parminder Partners Is Expected to Generate Free Cash Flows of $4

Multiple Choice

Parminder Partners is expected to generate free cash flows of $4 million per year for the next 5 years,after which they are expected to grow at a rate of 3% per year.The firm currently has $2 million of cash,$7 million of debt,and a cost of capital of 8%.If the firm has 10 million shares outstanding,what is Parminder's expected current share price?

A) $6.71
B) $6.29
C) $6.55
D) $7.21
E) $6.51