1. (Stock valuation) Tasty Cake Company reports the following financial statements Year 2113 Rated 101.82 Totalt and equity (1) Use the following assumptions to forecast pro-forma income statement and balance sheet for a Syer period and all year (years): Sales increases to $850 in the first year and then increase 10 per year from year 2 to 5. Growth rate will be per year after year 5. Cost of sales is 45% of sales. Sales, geral, and d istrative (SGA) expenses are 15 of sales Depreciation is 10% of gross end-of-year property, plant, and (PPA) in Years through 5. Interest expense is 5% of end-of-year tes b e in Years doch Taxate is 21% Cash is 50 Years 1. 2. und 3.30 in Yews and Ac a ble (sales) as a meat of 60 Years Le cost of sales has a ver of Year s PPE is 500 Yen 12 und 3. $850 in Years and A s cost of als) has a turnover ratio of 100 in Years through LOder tema 910 in Years I though 5. m. Now we are $300 Years 1 and 2.250 in Years 14 and 5 Co w ock is $100 Years 1, 2 and 3 increasing to $110 in Years 4 and 5 Retained Earnings increase by $10 in Year 1 are $120 in Years through S. c) Compute free cash flow for years through and for the terminal year. 0) Compute the price of stock shares. Tasty Cake has 100 shares outstanding and 12% discount 1. (Stock valuation) Tasty Cake Company reports the following financial statements Year 2113 Rated 101.82 Totalt and equity (1) Use the following assumptions to forecast pro-forma income statement and balance sheet for a Syer period and all year (years): Sales increases to $850 in the first year and then increase 10 per year from year 2 to 5. Growth rate will be per year after year 5. Cost of sales is 45% of sales. Sales, geral, and d istrative (SGA) expenses are 15 of sales Depreciation is 10% of gross end-of-year property, plant, and (PPA) in Years through 5. Interest expense is 5% of end-of-year tes b e in Years doch Taxate is 21% Cash is 50 Years 1. 2. und 3.30 in Yews and Ac a ble (sales) as a meat of 60 Years Le cost of sales has a ver of Year s PPE is 500 Yen 12 und 3. $850 in Years and A s cost of als) has a turnover ratio of 100 in Years through LOder tema 910 in Years I though 5. m. Now we are $300 Years 1 and 2.250 in Years 14 and 5 Co w ock is $100 Years 1, 2 and 3 increasing to $110 in Years 4 and 5 Retained Earnings increase by $10 in Year 1 are $120 in Years through S. c) Compute free cash flow for years through and for the terminal year. 0) Compute the price of stock shares. Tasty Cake has 100 shares outstanding and 12% discount