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Calculate value per share using discounted cash flow method

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Reference no: EM133058380

Question - The following forecast is provided to you for the years 2006-2009 (in millions of dollars):

 

2006

2007

2008

2009

Cash flow from Operations

$2,014

$2,057

$2,095

$2,107

Cash Investment in operations

300

380

1442

470

Short-term and long-term debt at the end of 2005 - $6,192 million

Required rate of return - 9 percent

Growth rate after 2009 - 3 percent

Shares outstanding at the end of 2005 - 369 million, trading at $47 per share.

Required - Calculate value per share using discounted cash flow method.

Reference no: EM133058380

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