14.

IDX Technologies is a privately held developer of advanced security systems based in Chicago. As part of your business development strategy, in late 2013 you initiate discussions with IDX's founder about the possibility of acquiring the business at the end of 2013. Estimate the value of IDX per share using a discounted FCF approach and the following data:

bullet

Debt:

$ 28$28

million

bullet

Excess cash:

$ 110$110

million

bullet

Shares outstanding: 50 million

bullet

Expected FCF in 2014:

$ 44$44

million

bullet

Expected FCF in 2015:

$ 54$54

million

bullet

Future FCF growth rate beyond 2015: 4 %4%

bullet

Weighted-average cost of capital: 9.4 %9.4%

The terminal enterprise value in 2014 is

$nothing

million.(Round to the nearest integer.)The enterprise value in 2013 is

$nothing

million. (Round to the nearest integer.)The equity value is

$nothing

million. (Round to the nearest integer.)The value of IDX per share is

$nothing.

(Round to the nearest cent.)