At the beginning of its fiscal year 2010, an analyst made the following forecast for Arrow Inc. (in millions of dollars): 2010 2011 2012 2013 Cash flow from operation $1,200 $2,500 $3,500 $2,000 Cash investment 400 460 490 750 Arrow has a net debt of $2,900 at the end of 2009. Assume that free cash flow will grow at 4 percent per year in 2014 and 2015, after that this will grow at 5 percent per year. Greenfield had 325 million shares outstanding at the end of 2009, trading at $50.5 per share. Using a required return of 9 percent, calculate the following for Arrow at the beginning of 2010 (You have to fill in the table below, and also show your working process): A. The enterprise value B. Equity value C. Equity value per share D. Based on your estimate, should investors buy the share of this company? 2010 2011 2012 2013 2014 2015 Cash flow from operation Cash investment Free cash flow Discount rate PV of FCF Total PV till 2013 Continuing value (CV) PV of CV