Assume today is december 31, 2019. barrington industries expects that its 2020 after-tax operating income [ebit(1 – t)] will be $420 million and its 2020 depreciation expense will be $70 million. barrington's 2020 gross capital expenditures are expected to be $110 million and the change in its net operating working capital for 2020 will be $20 million. the firm's free cash flow is expected to grow at a constant rate of 5% annually. assume that its free cash flow occurs at the end of each year. the firm's weighted average cost of capital is 8.3%; the market value of the company's debt is $2.8 billion; and the company has 190 million shares of common stock outstanding. the firm has no preferred stock on its balance sheet and has no plans to use it for future capital budgeting projects. also, the firm has zero non-operating assets. using the corporate valuation model, what should be the company's stock price today (december 31, 2019)? do not round intermediate calculations. round your answer to the nearest cent.

Suppose that a major city’s main thoroughfare, which is also an interstate highway, will be completely closed to traffic for two years, from january 2014 to december 2015, for reconstruction at a cost of $535 million. if the construction company were to keep the highway open for traffic during construction, the highway reconstruction project would take much longer and be more expensive. suppose that construction would take four years if the highway were kept open, at a total cost of $800 million. the state department of transportation had to make its decision in 2014, one year before the start of construction (so that the first payment was one year away). so the department of transportation had the following choices: (i) close the highway during construction, at an annual cost of $267.5 million per year for two years. (ii) keep the highway open during construction, at an annual cost of $200 million per year for four years. now suppose the interest rate is 80%. calculate the present value of the costs incurred under each plan.