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Calculate free cash flow

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An analyst makes the following forecasts of cash flows for a firm with $2 billion of debt at the end of 2006 (in millions of dollars):

2007 2008 2009
Cash flow from operations $1,460 $1,680 $1,780
Cash investment $ 580 $ 585 $ 805

The free cash flow will grow at a rate of 4% per year after 2009. The required rate of return is 10%.
Calculate the value per share of the firm if it has 2,350 million outstanding shares.

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This provides the steps to calculate free cash flow.

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An analyst makes the following forecasts of cash flows for a firm with $2 billion of debt at the end of 2006 (in millions of dollars):

2007 2008 2009
Cash flow from operations $1,460 $1,680 $1,780
Cash investment $ 580 $ 585 $ 805

The free cash flow ...

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