Your firm would like to evaluate a proposed new operating division. You have forecasted cash flows for this division for the next five years, and have estimated that the cost of capital is 12%. You would like to estimate a continuation value. You have made the following forecasts for the last year of your five-year forecasting horizon (in millions of dollars): a. You forecast that future free cash flows after year 5 will grow at 2% per year, forever. Estimate the continuation value in year 5 , using the perpetuity with growth formula. b. You have identified several firms in the same industry as your operating division. The average P/E ratio for these firms is 30 . Estimate the continuation value assuming the P/E ratio for your division in year 5 will be the same as the average P/E ratio for the comparable firms today. c. The average market/book ratio for the comparable firms is 4.0. Estimate the continuation value using the market/book ratio. Note: Assume that all firms (including yours) have no debt. a. You forecast that future free cash flows after year 5 will grow at 2% per year, forever. Estimate the continuation value in year 5 , using the perpetuity with growth formula. The continuation value in year 5 is $ million. (Round to one decimal place.)