Calculate the PV of free cash flow, assuming a cost of equity of 10%.

Phoenix Corp. faltered in the recent recession but is recovering. Free cash flow has
grown rapidly. Forecasts made in 2019 are as follows:
($ millions) 2020 2021 2022 2023 2024
Net income 1.0 2.5 4.2 4.7 5.0
Investment 1.0 1.5 1.7 1.9 1.9
Free cash flow 1.0 1.0 2.5 2.8 3.1
Phoenix’s recovery will be complete by 2024, and there will be no further growth in net
income or free cash flow.
a. Calculate the PV of free cash flow, assuming a cost of equity of 10%.
b. Assume that Phoenix has 12 million shares outstanding. What is the price per share?