The Millennium Company earned $2.5 million in net income last year. It took depreciation deductions of $300,000 and made new investments in working capital and fixed assets of $100,000 and $350,000, respectively.

A. What was Millenniums free cash flow last year?

B. Suppose that the companys free cash flow is expected to grow at 5% per year forever. If investors require an 8% return on Millennium stock, what is the present value of Millenniums future free cash flows?

C. Millennium has 3.5 million shares of common stock outstanding. What is the per-share value of the companys common stock?

D. What is Milleniums P/E ratio based on last years earnings (i.e., trailing earnings)?

E. What is Milleniums P/E ratio based on next years earnings (assume that earnings grow at the same rate as free cash flow)?