New Millenium Company earned $$2\mathrm{.}3$ million in net income last year. It took depreciation deductions of $$303,000$ and

made new investments in working capital and fixed assets of $$104,000$ and $$355,000,$ respectively.

a$.$ What was New Millenium's free cash flow last year?

b$.$ Suppose that the company's free cash flow is expected to grow at $5\%$ per year forever. If investors require a return of

$7\%$ on Millenium stock, what is the present value of Millenium's future free cash flows?

c$.$ New Millenium has $3\mathrm{.}6$ million shares of common stock outstanding. What is the per$-$share value of the company's

common stock?

d$.$ What is the company's P$/$E ratio based on last year's earnings $($i$.$e$.,$ trailing earnings$)?$

e$.$ What is the company's P$/$E ratio based on next year's earnings $($assuming that earnings grow at the same rate as free

cash flow$).$