Free cash flow will be up around $4 billion. At its full-year results Telstra announced a major investment program that will see capital expenditure grow to 18 per cent of sales, up from the current 14 per cent. "After divesting Autohome for a $2 billion profit and with the National Broadband Network payments starting to accelerate, Telstra's balance sheet was starting to look lazy, so Telstra has decided to put the funds to work in the form of a larger capital investments and capital management," Morgans analyst Nick Harris wrote in a recent note to clients. Mr Harris has a target price of $5.51 with a 'hold' recommendation. Shareholders also complained about the low share price at the annual meeting. It recently dipped below $5 for the first time in three years, but has since recovered and last traded at $5.10 on Friday.