Problem $4-29$ Valuing a business Phoenix Corporation faltered during the Covid pandemic but is recovering. Free cash flow has grown rapidly. Forecasts made in $2021$ are as follows: $($$ millions$)20222023202420252026$Net income$1\mathrm{.}02\mathrm{.}64\mathrm{.}44\mathrm{.}905\mathrm{.}2$Investment$1\mathrm{.}01\mathrm{.}61\mathrm{.}82\mathrm{.}02\mathrm{.}0$Free cash flow$01\mathrm{.}02\mathrm{.}62\mathrm{.}93\mathrm{.}2$ Phoenix$$s recovery will be complete by $2026,$ and there will be no further growth in net income or free cash flow. Calculate the PV of free cash flow, assuming a cost of equity of $10\%.$ Assume that Phoenix has $15$ million shares outstanding. What is the price per share? Calculate the expected rate of return on Phoenix stock in each of the years from $2022$ to $2026.$ Phoenix Corporation faltered during the Covid pandemic but is recovering. Free cash flow has grown rapidly. Forecasts made in $2021$ are as follows:

Phoenix's recovery will be complete by $2026,$ 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 $\backslash (10\backslash \%\backslash ).$

b$.$ Assume that Phoenix has $15$ million shares outstanding. What is the price per share?

c$.$ Calculate the expected rate of return on Phoenix stock in each of the years from $2022$ to $2026.$

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Required C

Calculate the PV of free cash flow, assuming a cost of equity of $\backslash (10\backslash \%\backslash ).$

Note: Do not round intermediate calculations. Enter your answer in millions rounded to $2$ decimal places.