Answer:
$40
Explanation:
To calcuate the intrinsic value per share, we have to first calculate the Firm value;
Firm value = [tex]FCF1[/tex] ÷ [tex](WACC - Growth rate)[/tex]
= $70 ÷ (10% - 5%)
= $1,400 Million
The Stock price is calculated as;
(Firm value - Debt) ÷ No. of shares
= ($1,400 Million - $200 Million) ÷ 30 Million shares
= $40