Question: BOATHEAD ENTERPRISES 2014 and 2015 Partial Balance Sheets Assets Liabilities and Owners Equity 2014 2015 2014 2015 Current assets $ 946 $ 1,008 Current liabilities
| BOATHEAD ENTERPRISES 2014 and 2015 Partial Balance Sheets | ||||||||||||||
| Assets | Liabilities and Owners Equity | |||||||||||||
| 2014 | 2015 | 2014 | 2015 | |||||||||||
| Current assets | $ | 946 | $ | 1,008 | Current liabilities | $ | 385 | $ | 404 | |||||
| Net fixed assets | 3,907 | 4,600 | Long-term debt | 2,029 | 2,197 | |||||||||
| Equity | 2,439 | 3,007 | ||||||||||||
| BOATHEAD ENTERPRISES 2015 Select IncomeStatement Info | ||
| Sales | $ | 12,340 |
| Costs | 5,920 | |
| Depreciation | 1,050 | |
| Interest paid | 190 | |
The tax rate is 35%. Long term debt trades at par. The firm has 1,000 shares outstanding. Free Cash Flow to the Firm will grow at 2% and the Free Cash Flow to Equity will grow at 7% forever. The weighted average cost of capital is 12%. The cost of equity is 20%. Construct the income statement. Then answer the following 7 questions. What is the: Stock price per share using the discounted FCFF valuation? Free Cash Flow to Equity for 2015? Stock price per share using the discounted FCFE valuation?
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