At the end of 2012, you forecast the following cash flows (in millions) for a firm with net debt of $759 million: 2013 2014 2015 Cash flow from operations $1,450 $1,576 $1,718 Cash investment 1,020...

At the end of 2012, you forecast the following cash flows (in millions) for a firm with net debt of $759 million:

You forecast that free cash flow will grow at a rate of 4 percent per year after 2015. Use a required rate of return of 10 percent in answering the following two questions:

1. The firm’s enterprise value (in millions) at the end of 2012 is equal to:


2. The firm’s equity value (in millions) at the end of 2012 is equal to: