$ millions

2016 2017 2018 2019 2020

EBIT 5500 5600 5800 6010 6030

Capital Expenditures 500 500 500 500 500

Changes in Working Capital 40 100 (20) (20) 10

Depreciation 50 60 100 120 130

tax rate is 38%, 12% discount rate

Estimate the fair market value today. Assume that after 2020, EBIT will remain constant at $6030 million (no growth), depreciation will equal capital expenditures each year, and working capital will not change. Assume cost of capital after 2020 will continue to be 12%