You are reviewing the valuation of Boeing, a publicly traded American company. The analyst claims to have done the valuation in US dollar terms, discounting the expected cash flows in US dollars at a US dollar cost of capital of 12% to arrive at a value of $1.2 billion.

As you review the valuaton, though, you believe that the analyst has estimated the expected cash flow and cost of capital correctly in US dollars but she has assumed a constant US dollar price (no inflation) after that and a real growth rate of Boeing of 2%. The ten-year US T.Bond rate is 2.75%% and the US TIPs (Inflation indexed bond) rate is 1.25%.

Estimate the correct value for Boeing today.