IDX Technologies is a privately held developer of advanced security systems based in

Chicago. As part of your business development strategy, in late $2008$ you initiate

discussions with IDX's founder about the possibility of acquiring the business at the end

of $2008.$ Estimate the value of IDX per share using a discounted Free Cash Flow $($FCF$)$

approach and the following data: $(25$ points$)$

Debt: $$70$ million

Excess Cash: $$250$ million

Shares outstanding: $50$ million

Expected FCF in $2009$: $$70$ million

Expected FCF in $2010$: $$55$ million

Future FCF growth rate beyond $2010$: $6\%$

Weighted$-$average cost of capital: $9\mathrm{.}4\%$