Valuing free cash flow Phoenix Corp. faltered in the recent recession but is recovering. Free cash flow has grown rapidly. Forecasts made at the beginning of 2016 are as follows: ($ millions) 2017 2018 2019 2020 2021 Net income 1.0 2.4 4.0 4.5 4.8 Investment 1.0 1.4 1.6 1.8 1.8 Free cash flow 0 1.0 2.4 2.7 3.0 Phoenixs recovery will be complete by 2021, and there will be no further growth in free cash flow. a. Calculate the PV of free cash flow, assuming a cost of equity of 8%. b. Assume that Phoenix has 13 million shares outstanding. What is the price per share? c. What is Phoenixs P/E ratio?