IDX Technologies is a privately held developer of advanced security systems based in Chicago. As part of your business development strategy, in late 2008 you initiate discussions with IDX’s founder about the possibility of acquiring the business at the end of 2008. Estimate the value of IDX per share using a discounted FCF approach and the following data:

• Debt: $38 million

• Excess cash: $118 million

• Shares outstanding: 50 million

• Expected FCF in 2009: $46 million

• Expected FCF in 2010: $57 million

• Future FCF growth rate beyond 2010: 4%

• Weighted-average cost of capital: 9.4%