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 IDXs founder about the possibility of acquiring the business at the end of 2008. Estimate the value of IDX per share. What is the company P/E ratio based on 2011 earnings? How much are the dividends for 2012 year? Use the following information:

• Shares outstanding: 50 million
• Expected free cash flow (FCF) in 2009: $45 million
• Expected free cash flow (FCF) in 2010: $50 million
• Free cash flow grows 15% in 2011
• Free cash flow grows 8% in 2012
• Free cash flow grows 5% per year for all subsequent years (Future free cash flow (FCF) growth rate beyond 2012: 5%)
• Rate of return: 9.4%

• Assume earnings grow at 8% per year
• Sales in 2010: $650 million
• Profit margin: 12%
• In 2010 IDX Technologies Company will pay out $0.35 of 2010 year earnings per share to shareholders in the form of a dividend. Payout ratio stays the same over time.

Use and present answer with 4 decimals.