Problem:
Smith Technologies is expected to generate $1 million in cash flow next year, $3 million in cash flow in year 2 and $5 million in cash flow in year three. After that, growth is expected to remain at 5% indefinitely. Smith has no debt, 5 million shares outstanding, and r = 8%.
Requirement:
Question: What is the stock's value per share?
Note: Show supporting computations in good form.