£4.10, £4.11. Chapter 4 Cush Accommung, Accrual Accounung, and Descoumted Cash low Valuatun 135 A Discounted Cash Flow Valuation: General Mills, Inc, (Medium) At the beginning of its fiseal year 2006, an analyst made the following forecast for General Mills, Ine., the consumer foods company, for 2006-2009 (in millions of dollars): 2006 2007 2008 2009 Cash flow from operations $2,014 $2,057 $2,095 $2,107 Cash investment in operations 300 380 442 470 General Mills reported $6,192 million in short-term and long-term debt at the end of 2005 but very little in interest-bearing debt assets. Use a required return of 9 percent to calculate both the enterprise value and equity value for General Mills at the beginning of 2006 under two forecasts for long-run cash flows: a. Free cash flow will remain at 2009 levels after 2009. b, Free cash Mow will grow at 3 percent per year after 2009, Gencrat Mills had 369 million shares outstanding at the end of 2005, trading at $47 per share. Calculate value per share and a valuc-to-price ratio under both scenarios. Real World Connection Sce Exercises E1.5, £2.9, £3.8, E6.8, El 1.9, E13.9, E14.15, £15.6, and E16.10, Free Cash Flow for General Motors (Medium) For the first nine months of 2005, General Motors Corporation reported the foliowing in its cash flow statement. GM runs an automobile operation supported by a financing arm, and hoth activities are reflected in these statements,