Remaining Time: 1 hour, 39 minutes, 54 seconds. Question Completion Status: questions, otherwise you will only get partial points. If there are 500 million shares outstanding, use the following information to find a fair equity value for Galaxy Interiors stock using the Free Cash Flow (FCF) model. GALAXY INTERIORS BALANCE SHEETS (PAST & CURRENT) ($ IN MILLIONS) PAST YR CURRENT YR PAST YR CURRENT YR CURRENT ASSETS 5500 $700 CURRENT LIABILITIES 2200 3000 (NET) FIXED ASSETS 25000 7000 LONG TERM DEBT 9300 9700 TOTAL ASSETS 30500 33700 TOTAL EQUITY 19000 21000 TOTAL LIAB & EQUITY 30500 33700 GALAXY INTERIORS CURRENT YR INCOME STATEMENT ($ IN MILLIONS) NET SALES $ 35,000.00 COST OF GOODS SOLD $ 17,500.00 DEPRECIATION $ 2,500.00 EARNINGS BEFORE INTEREST AND TAXES (EBIT) $ 15,000.00 INTEREST EXPENSE $ 1,300.00 TAXABLE INCOME $ 13,700.00 TAXES (0.30) $ 4,110.00 NET INCOME $ 9,590.00 Also, assume the following: . Free cash flow (FCF) will grow at 2.5% . Galaxy's equity beta is 1.50 Risk-free rate is 3% and market return is 13% . Currently, Galaxy is not paying any dividends Book value of total debt is equal to the market value of debt further note that: . Net capital spending (NCS) = FIXED ASSETSend - FIXED ASSETSbeg + DEPRECIATION ; change in Net working capital (NWC) = {CURRENT ASSETS - CURRENT LIABILITIES}end - { CURRENT ASSETS - CURRENT LIABILITIES }beg Type here to search 38OF Clear Prison Home End PgUp P @ O Tab W Y O Laps A S D G H KQuestion Completi Risk-free rate is 3% and market return is 13% Currently, Galaxy is not paying any dividends . Book value of total debt is equal to the market value of debt . further note that: . Net capital spending (NCS) = FIXED ASSETSend - FIXED ASSETSbeg + DEPRECIATION ; o change in Net working capital (NWC) = {CURRENT ASSETS - CURRENT LIABILITIES}end - { CURRENT ASSETS - CURRENT LIAB *note: even if you round your final answers, use at least 6 decimals for your interim calculations Questions: #1. What beta value should we use for the FCF model? #2. What is the stock value per share using the FCF model? #1. beta = 1.50 #1. beta = 1.20 7 #1. beta = 1.11 #1. beta = 1.05 #1. beta = 1.34 #2. approx. $125 #2. approx. $144 #2. approx. $625 #2. approx. $344 Moving to another question will save this response. Type here to search O IX F5 Prison FC Home End F9 N Tab W R