Bryson? Industries's free cash flow to its equity holders? (FCFE) was ?$50 million in its most recent fiscal year that just ended.? Bryson's FCFE is expected to grow steadily at 3?% per year in perpetuity. The? 10-year T-note yield is? 2%, the expected market risk premium is 5?% and? Bryson's beta is1.5. Bryson has 20 million shares outstanding. What should be the price of each? share?
?(Hint: Step? 1: Find the discounted value of the? firm's FCFEs using the? constant-growht model and CAPM required return as the discount rate.
Step? 2: Divide the total value of equity by the total number of shares outstanding to find the price per? share).
The price of each share should be ?$___ ?(Round to the nearest? cent.)