Question: Cell Phone Inc. is a cellular firm that reported net income of $50 million in the most recent financial year. The firm had $ 1 billion in debt, on which it reported interest expenses of $ 100 million in the most recent financial year. The firm had depreciation of $ 100 million for the year, and capital expenditures were 200% of depreciation. The firm has a cost of capital of 11%. Assuming that there is no working capital requirement, and a constant growth rate of 4% in perpetuity, estimate the value of the firm.