1) [20 Points]: You are comfortable with the following projections. Assume that the valuation is as of the beginning of 2020, and we plan to use the mid-year convention for discounting. Calculate: a. Free Cash Flow for 2022E. b. For your computational convenience (I assume that you can calculate the numbers), the present value of the projected period (2020 through 2024) equals $18,593 (thousand). Given the terminal multiple below, what is the value of the firm? C. The implied current Price to Earnings (PE) Ratio. Recall that this is the Price per share divided by the Net Income per share. d. The estimated current price per share. Amounts in S thousands 2019A 2020E 2021E 2022E 2023E 2024E Revenue COGS Gross Profits 58,555 (22,192) 36,362 82,120 107,115 130,364 142,982 151,535 (31,205) (41,240) (50,842) (56,048) (59,553) 50,915 65,876 79,523 86,934 91,982 SG&A EBIT (29,277) (38,596) (48,202) (57,360) (61,482) (63,644) 7,086 12,318 17,674 22,163 25,452 28,338 Interest expense (807) (748) (748) (811) (805) (804) EBT 6,279 11,571 16,926 21,352 24,647 27,534 Provision for taxes (1,160) (2,372) (3,470) (4,377) (5,052) (5,644) Net Income 5,119 9,199 13,457 16,975 19,595 21,890 Relevant Balance Sheet items Required cash 8,197 12,318 16,067 17,599 18,587 19,548 Excess cash 4,488 Accounts receivable 4,973 6,749 8,510 10,000 10,968 11,624 Inventory 4,134 5,899 7,909 9,889 10,902 11,747 Total current assets 21,792 24,966 32,486 37,488 40,457 42,919 Accounts payable 1,033 1,496 2,034 2,576 2,841 3,018 Notes payable 209 205 276 132 126 31 Total current liabilities 1,243 1,701 2,309 2.709 2,967 3,049 Net PP&E 21,292 29,328 37,584 44,953 48,468 51,367 Long term debt 12,108 12,108 13,090 13,090 13,090 13,090 Depreciation 967 1,724 2,346 2,969 3,506 3,780 NOWC 16,271 23,470 30,452 34,912 37,617 39,901 Other relevant information WACC 9.84% Corporate tax rate 22.0% Number of shares outstanding (thousands) 6,222 Terminal EBITDA multiple (for terminal multiple method) 10.10x