Consider HES Company's financial statements given below. Assume the Company's beta is estimated to be 1.5, risk free rate 2%, and market risk premium 10%. Furthermore, assume the company has a long-term growth rate for 2% after the fifth year and net income and comprehensive income will be identical.
What is the company's value using the following methods, for each method and part, provide your analysis and discussion. (Answer ALL parts A-F).
a) Residual Income
b) Value to Book
c) Free Cash Flow to Equity (FCFE)
d) Free Cash Flow to Company (FCFC, Debt and Equity)

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HES Company Financial Statements Income Statements Year +1 $1,976,000 $2,074,800 $2,178,540 $2,287,467$2,401,840 1,213,659 1,274,3421,338,059 1,404,962 1,475,210 762,341 S800,458 $840,481 S882,505 S926,630 Year 2 Year +3 Year +4 Year +5 Revenues Cost of Sales Gross Profit Accounting 6,000 6,300 6,615 6,946 7,293 Advertising & Promotion 15,000 12,360 12,731 13,113 13,506 Bank Charges Compensation & Benefits Consulting Fees Insurance Lease Facilities Legal & Professional Licenses & Fees Maintenance Miscellaneous 41,496 246,643 2,400 1,000 336,000 500 500 600 1,800 2,700 720 1,800 4,200 1,800 663,159 43,571 254,042 0 1,050 336,000 500 510 612 1,836 2,754 742 1,836 4,410 1,800 668,323 45,749 261,663 0 1,103 336,000 500 520 624 1,873 2,809 764 1,873 4,631 1,800 679,255 48,037 269,513 0 1,158 336,000 500 531 637 1,910 2,865 787 1,910 4,862 1,800 690,569 50,439 277,598 0 1,216 336,000 500 541 649 1,948 2,923 810 1,948 5,105 1,800 702,276 Office supplies Security Telephone Utilities Website Total Operating Exp. $99,182 4,916 $94,266 43,199 51,067 17,873 $33,194 EBIDTA $132,135 $161,226$191,936 $224,354 4,916 $156,310 $187,020 $219,438 37,059 119,251 41,738 $77,513 4,916 Depreciation Operating Profit Interest Expense Earnings Before Taxes Income Taxes Net Income 4,916 4,916 40,274 86,945 30,431 $56,514 33,524 153,496 53,724 $99,772 29,639 189,799 66,429 $123,370 Balance Sheets Begin S33,150 $110,697 $210,697$243,259 $293,834 S363,370 425,000 425,000 424,781 446,020 468,321491,737 28,000 $486,150 $563,697 $663,478$717,279 $790,155 $883,107 Year +1 Year 2 Year +3 Year +4Year +5 Cash Inventory Prepaid Leases 28,000 28,000 28,000 28,000 28,000 Total Current Assets Fixed Assets Less: Depreciationn Net Fixed Assets Total Assets 33,850 0 33,850 $520,000 $592,631 $687,496$736,382 $804,341 $892,378 33,850 4,916 28,934 33,850 9,832 24,018 33,850 14,747 19,103 33,850 19,664 14,186 33,850 24,579 9,271 3968 161667 468,000 438,529 406,133 370,522 331,377 288,346 468,000 507,437 545,787 517,159 485,345 450,013 68,908139,654 14 6,637 15 Accounts Payable Long Term Debt Total Liabilities Owner's Equity 52,000 52,000 52,000 52,000 52,000 52,000 3,194 89,709 167,223 266,996 390,365 Total Liabilities& Equity $520,000 $592,631$687,496736,382 $804,341$892,378 Paid-in Capital Retained Earnings