Question: Rock Hard Corp expects the following free cash flows in millions over the next five years
1 150
2 200
3 180
4 210
5 300
After the 5th year, free cash flows are expected to grow at five percent per year. Using the discounted free cash flow model and a weighted average cost of capital if 15 percent
[A] Calculate the enterprise value of Rock Hard
[B] Rock hard has excess cash of dollar 20 million, debt of dollar 550 million, & dollar 80 million shares outstanding, calculate its stock price.