Jake Corporation is a fast growing company, with projected free cash flows (FCFs) during the next two years of $10 million and $20 million respectively. After two years, the FCF is expected to grow at a constant 6% rate. Jakes WACC is 10%, and the company has $50 million dollars in debt and 5 million shares.
a. What is the firm's equity value?
b. What is the price per share?