Please answer the following questions. Please write all your work and equations used

Guadalajara & Blings is a firm that makes Mexican food and princess tiaras. It is a competitor of the firm in the previous problem, so it will have the same cost of capital and the same long-term growth rate (in fact, your keen analysis should notice something fishy its balance sheet looks very similar to its competitor). For the sake of simplicity, we will also assume that it has the same cost of equity (although in reality, this will not be the case if it has a different debt ratio). This firm has 500,000 shares of stock outstanding. The accounting statement is in thousands of dollars on the following pages. Assuming that the projections are correct and that there are no asset sales other than those at book value, compute the stock price per share using:

a) the WACC/FCF method

b) the Flow-to-Equity method

You are already given a pro-forma statement for this problem, but you still need to show how you arrived at your pro-forma cash flows.

Guadalajara \& Blings Financial Statement Projections: \begin{tabular}{lrrrrrrrr} Income Statement & Year 0 & \multicolumn{1}{c}{1} & \multicolumn{1}{c}{2} & \multicolumn{1}{c}{3} & \multicolumn{1}{c}{4} & \multicolumn{1}{c}{5} & \multicolumn{1}{c}{6} & \multicolumn{1}{c}{7} \\ \cline { 2 - 8 } Total Revenue & 17,300 & 19,030 & 19,982 & 21,980 & 23,738 & 26,112 & 26,112 & 28,723 \\ Cost of Goods Sold & 7,000 & 7,700 & 8,085 & 8,894 & 9,783 & 10,761 & 11,837 & 13,021 \\ SG \& A & 3,600 & 3,960 & 3,960 & 4,356 & 4,574 & 5,031 & 5,534 & 6,088 \\ Depreciation & 3,250 & 3,575 & 3,933 & 4,326 & 4,758 & 5,234 & 5,758 & 6,333 \\ Earnings Before Interest and & 3,450 & 3,795 & 4,004 & 4,404 & 4,623 & 5,085 & 2,983 & 3,281 \\ Taxes (EBIT) & 680 & 690 & 700 & 710 & 720 & 730 & 740 & 750 \\ Interest Expense & 2,770 & 3,105 & 3,304 & 3,694 & 3,903 & 4,355 & 2,243 & 2,531 \\ Taxable Income & 969.5 & 1087 & 1156 & 1293 & 1366 & 1524 & 785 & 886 \\ Tax Expense & 1,801 & 2,018 & 2,148 & 2,401 & 2,537 & 2,831 & 1,458 & 1,645 \\ Net Income (Loss) & 450 & 490 & 530 & 610 & 790 & 870 & 950 & 1030 \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|c|c|} \hline Balance Sheet & \begin{tabular}{l} End of \\ Year 1 \end{tabular} & & & & & & & \\ \hline \multicolumn{9}{|l|}{ Assets } \\ \hline \multicolumn{9}{|l|}{ Current assets: } \\ \hline Cash and cash equivalents & 1,350 & 1,350 & 1,350 & 1,350 & 1,350 & 1,350 & 1,350 & 1,350 \\ \hline Accounts receivable & 940 & 1034 & 1085.7 & 1194 & 1290 & 1419 & 1419 & 1561 \\ \hline Inventory & 2,360 & 2596 & 2725.8 & 2998 & 3298 & 3628 & 3991 & 4390 \\ \hline Total current assets & 4,650 & 4,980 & 5,162 & 5,543 & 5,938 & 6,397 & 6,760 & 7,301 \\ \hline Net Fixed Assets & 9,850 & 10,850 & 12,850 & 13,350 & 14,350 & 15,350 & 16,350 & 16,850 \\ \hline Total assets & 14,500 & 15,830 & 18,012 & 18,893 & 20,288 & 21,747 & 23,110 & 24,151 \\ \hline \multicolumn{9}{|l|}{\begin{tabular}{l} Liabilities and stockholders' \\ equity \end{tabular}} \\ \hline \multicolumn{9}{|l|}{ Current liabilities: } \\ \hline Accounts payable & 1,920 & 2112 & 2218 & 2439 & 2683 & 2952 & 3247 & 3571 \\ \hline Short/Current L.T. Debt & 1,500 & 1,500 & 1,500 & 368 & 368 & 368 & 368 & 368 \\ \hline Total current liabilities & 3,420 & 3,612 & 3,718 & 2,807 & 3,051 & 3,320 & 3,615 & 3,939 \\ \hline Long Term Debt & 2,800 & 2,410 & 2,868 & 2,868 & 2,273 & 1,502 & 2,062 & 2,163 \\ \hline Capital Leases & 700 & 700 & 700 & 700 & 700 & 700 & 700 & 700 \\ \hline Deferred Taxes & 1,500 & 1,500 & 1,500 & 1,500 & 1,500 & 1,500 & 1,500 & 1,500 \\ \hline Total liabilities & 8,420 & 8,222 & 8,786 & 7,875 & 7,524 & 7,022 & 7,877 & 8,302 \\ \hline \multicolumn{9}{|l|}{ Stockholders' equity: } \\ \hline Common stock & 3,500 & 3,500 & 3,500 & 3,500 & 3,500 & 3,500 & 3,500 & 3,500 \\ \hline Retained Earnings & 2,580 & 4,108 & 5,726 & 7,517 & 9,264 & 11,225 & 11,733 & 12,348 \\ \hline Total stockholders' equity & 6,080 & 7,608 & 9,226 & 11,017 & 12,764 & 14,725 & 15,233 & 15,848 \\ \hline \begin{tabular}{l} Total liabilities and \\ equity \end{tabular} & 14,500 & 15,830 & 18,011 & 18,893 & 20,288 & 21,747 & 23,110 & 24,151 \\ \hline \end{tabular}