Shady Sunglasses operates retail sunglass kiosks in shopping malls. Below is information related to the company:

(Dollar amounts in thousands)

	2014	2015	2016	2017	2018	2019
Net Cash Flow from Operations	564	628	854	1059	1345	1655
Interest Expense after Tax	122	134	148	145	155	148
Decrease (Increase) in Cash	-75	-54	-48	-32	-61	-48
Required for Operations
Net Cash Flow from Investing	-287	-300	-310	-285	-294	-277
Net Cash from Deb tFinancing	210	204	140	85	-40	-46
Present Value factors (R= 8.5%)	0.922	0.849	0.783	0.722	0.665
Common Shares Outstanding in thousands	1,512

Required:

1. Using the above information and assuming that steady-state growth of FCFE in year 2019 and beyond will be 4%, calculate Shady Sunglasses' current stock value per share using FCFE valuation model. Remember to adjust the present value for midyear discounting.

Answer rating: 100% (QA)

WACC 850 Steady growth rate 4 Common Shares Outstanding 000 1512 dollar ... View the full answer