Assume that today is December 31, 2012, and that the following information applies to Vermeil Airlines:
a. After-tax operating income [EBIT(1-T)] for 2013 is expected to be $500 million.
b. The depreciation expense for 2013 is expected to be $100 million.
c. The capital expenditures for 2013 are expected to be $200 million.
d. No change is expected in net operating working capital.
e. The free cash flow is expected to grow at a constant rate of 6% per year.
f. The required return on equity is 14%.
g. The WACC is 10%.
h. The market value of the company's debt is $2 billion.
i. 200 million share of stock are outstanding.
Using the corporate valuation model approach, what should be the company's stock price today?