You are interested in valuing the Boeing Company. The company just reported net income of $5.5 billion after interest expense of $333 million. The companys corporate tax rate is 35% and the depreciation expense was $1.91 billion. Capital expenditures amounted to $2.23 billion. Assume that there is no investment in NWC. Boeing executives are forecasting a 4% growth in free cash flow in perpetuity.

Boeing has an equity beta of 0.92 and a D/E ratio of .10. Assume a cost of debt of 4%, a risk free rate of 2%, and an equity risk premium of 6%

A. Estimate Boeings enterprise value (15 points)

B. What would Boeings growth rate have to be in perpetuity for the company to have an enterprise value of $90.49 billion? (5 points)