Consider the financial statements from GSB, Inc. (see the attached spreadsheet), and consider the following questions....

 

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Consider the financial statements from GSB, Inc. (see the attached spreadsheet), and consider the following questions. < 1. What is the firm's operating cash flow for 2019? 2. How much did the firm spend on capital investment in 2019? 3. What is the firm's change in net working capital for 2019 from the previous year? 4. What is the firm's free cash flow from assets for 2019? 5. Assuming the firm's free cash flow will continue to increase at the rate of 5% per year, what is the estimated value of the firm as of 2019? Assume that the investor's required rate of return (or cost of capital) is 10% per year. < 6. If the firm has 460 million shares of stock outstanding, what is the estimated stock price per share as of 2019 given your answer in Q.5+ GSB Inc. 2019 Income Statement (In $ millions) GSB, Inc. 12/31/2018 and 12/31/2019 Balance Sheet ($ in millions) Net Sales 9,625 2018 2019 2018 2019 Less: Cost of goods sold 5,225 Less: Depreciation 1.890 Cash 1,455 260 Accounts payable 1,150 2,963 Earnings before interest and taxes 2,510 Accounts rec. 2,460 3,975 Notes payable 2,600 1,528 Less: Interest paid 850 Inventory 1,405 Taxable income 1,660 Current assets 885 5,320 5,120 Current liabilities 3,750 4,491 Less: Taxes 581 Long-term debt 7,000 7,600 Net income 1.079 Fixed assets 19.300 21.720 Common stock 5,500 5,700 Retained earnings 8,370 9,049 Addition to retained earnings 679 Dividends paid 400 Total assets 24,620 26,840 Total liabilities and owners' equity 24,620 26,840 Consider the financial statements from GSB, Inc. (see the attached spreadsheet), and consider the following questions. < 1. What is the firm's operating cash flow for 2019? 2. How much did the firm spend on capital investment in 2019? 3. What is the firm's change in net working capital for 2019 from the previous year? 4. What is the firm's free cash flow from assets for 2019? 5. Assuming the firm's free cash flow will continue to increase at the rate of 5% per year, what is the estimated value of the firm as of 2019? Assume that the investor's required rate of return (or cost of capital) is 10% per year. < 6. If the firm has 460 million shares of stock outstanding, what is the estimated stock price per share as of 2019 given your answer in Q.5+ GSB Inc. 2019 Income Statement (In $ millions) GSB, Inc. 12/31/2018 and 12/31/2019 Balance Sheet ($ in millions) Net Sales 9,625 2018 2019 2018 2019 Less: Cost of goods sold 5,225 Less: Depreciation 1.890 Cash 1,455 260 Accounts payable 1,150 2,963 Earnings before interest and taxes 2,510 Accounts rec. 2,460 3,975 Notes payable 2,600 1,528 Less: Interest paid 850 Inventory 1,405 Taxable income 1,660 Current assets 885 5,320 5,120 Current liabilities 3,750 4,491 Less: Taxes 581 Long-term debt 7,000 7,600 Net income 1.079 Fixed assets 19.300 21.720 Common stock 5,500 5,700 Retained earnings 8,370 9,049 Addition to retained earnings 679 Dividends paid 400 Total assets 24,620 26,840 Total liabilities and owners' equity 24,620 26,840