ABS company expects that its next year after-tax operating income will be $500 million, depreciation expense will be $100 million, gross capital expenditures will be $150 million, and the change in its next operating working capital will be $50 million. The firm's free cash flow is expected to grow at a constant rate of 5% per year. The firm has no debt or preferred stock and has a weighted average cost of capital of 10%. The firm has 100 million shares of stock outstanding. The firm's non-operating asset is $2,000 million. Using the corporate valuation model, what is the value of the company's stock per share?
a. $120.00
b. $100.00
c. $50.00
d. $40.00
e. $80.00
