Quantitative Problem 1: Assume today is December 31, 2019. Barrington Industries expects that its 2020 after-tax operati

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Quantitative Problem 1: Assume today is
December 31, 2019. Barrington Industries expects that its 2020
after-tax operating income [EBIT(1 – T)] will be $430 million and
its 2020 depreciation expense will be $60 million. Barrington's
2020 gross capital expenditures are expected to be $110 million and
the change in its net operating working capital for 2020 will be
$20 million. The firm's free cash flow is expected to grow at a
constant rate of 6.5% annually. Assume that its free cash flow
occurs at the end of each year. The firm's weighted average cost of
capital is 9%; the market value of the company's debt is $2.65
billion; and the company has 180 million shares of common stock
outstanding. The firm has no preferred stock on its balance sheet
and has no plans to use it for future capital budgeting projects.
Also, the firm has zero non-operating assets. Using the corporate
valuation model, what should be the company's stock price today
(December 31, 2019)? Do not round intermediate calculations. Round
your answer to the nearest cent.
$ per share