You are an analyst at a large firm. The Chief Financial Officer presents the following free cash flow data for ABC Corp (in millions of $).

Year Cash Flow

2010 1597

2011 2678

2012 2175

2013 3156

2014 2452

please calculate the:

- Geometric Total Return - The Annualized Rate of Change

Then, the director asks you to make a 10 year cash flow forecast based upon the annualized rate of growth in cash flow.

Next, He asks you to calculate the NPV of the forecasted cash flows assuming an immediate investment cost of $20 billion.

To estimate the weighted average cost of capital, please use the following data points.

Market Value of Debt - $480,340,010 Market Value of Equity - $1,782,000,480 Current Yield to Maturity on Debt 4.9375% Tax Rate 34.1% Expected Return on Market 11.125% Current 10 year U.S. Treasury 2.875% Beta 1.92