CHAPTER 11, ACTIVITY #2: FINDING EQUITY VALUE PER SHARE WITH DCF Consider Stone Cold Company. The following financial statement data is available for the year just ended. Stone Cold Financial Data Income Statement Sales Cost of Goods Sold (COGS) Gross Margin (GM) Operating Expenses (OE) Ealnings Before Interest and Taxes (EBIT) Balance Sheet PPE (net) NWC In addition to the financial statement information, the following information reflects expectations regarding future performance of the firm. Stone Cold Inc. Sales Growth 2015 Sales Growth 2016-2018 Long-Term Growth Depreciation 2015 Depreciation to PPE After 2015 COGS to Sales Other Cash Expenses to Sales Tax Rate 2014 $100,000 60,000 PPE Growth to 2015 (NET) PPE to Sales after 2015 (NET) NWC to Sales Discount Rate (WACC) 20% 10% 4% $16,000 18% 60% 9% 40% 15% 75% 10% 11% 40,000 25,000 15,000 80,000 10,000 Fine the enterprise value of Stone Cold by (1) forecasting operations over the planning horizon plus one year, (2) calculating free cash flow over the pla