PHB Company currently sells for $32.50 per share. In an attempt to determine if PHB is fairly priced, an analyst has assembled the following information: • The before-tax required rates of return on PHB debt, preferred stock, and common stock are 7.0 percent, 6.8 percent, and 11.0 percent, respectively. • The company’s target capital structure is 30 percent debt, 15 percent preferred stock, and 55 percent common stock. • The market value of the company’s debt is $145 million, and its preferred stock is valued at $65 million. • PHB’s FCFF for the year just ended is $28 million. FCFF is expected to grow at a constant rate of 4 percent for the foreseeable future. • The tax rate is 35 percent. • PHB has 8 million outstanding common shares. What is PHB’s estimated value per share? Is PHB’s stock underpriced?