Given the forecast below, estimate the fair market value of Kenmore Airs equity per share at the end of 2017 under the following assumptions:

• EBIT in year 2021 is $210 million and then grows at 4 percent per year forever.
• To support the perpetual growth in EBIT, capital expenditures in year 2022 exceed depreciation by $25 million, and this difference grows 4 percent per year forever.
• Similarly, working capital investments are $10 million in 2022, and this amount grows 4 percent per year forever.
• Kenmore Airs weighted-average cost of capital is 11 percent, and its tax rate is 40 percent.
• Kenmore Air has 50 million shares outstanding, and the market value of its interest-bearing liabilities on the valuation date equals $300 million.

Forecast for Kenmore Air, Inc.
Year	2018	2019	2020	2021
Free cash flow ($ millions)	40	85	97	112