Problem
Venice Surf Co. expects to generate free cash flows over the next three years of $16 million, $27 million, and $50 million, respectively. In addition, the terminal value of all free cash flows expected to be generated after Year 3 is $768 million. The company's nonoperating assets equal $25 million and its nonoperating liabilities equal $137 million. There are 23 million shares outstanding. Estimate the value of each share of common stock using the free cash flow data provided, and assuming a weighted average cost of capital of 7%. Present your answer to two decimal places, e.g., $23.45.