10 Chapter 7 - Suppose you have the following information about a company. Calculate the stock price for 2019 using the FCF Note: Having Net Operating Profit after Taxes / Sales (OP ratio) and the Capital Requirements / Sales (CR ratio) are sufficient to calculate the FCF. We walked through an example like this in class. You can get guidance by referring to Chapter 7 on slides 38-42 and the Tool Kit Section 7-7 beginning on row 254. Finally, you don't need Balance Sheet items like short-term investments or Preferred Stock. You can assume these are all $0. Inputs FCF Model 2018 Sales $1,000,000 2019 Sales $1,050,000 OP Ratio 4% OP Ratio = Operating Profit Ratio = NOPAT / Sales CR Ratio 50% CR Ratio = Capital Requirements Ratio = Operating Capital / Sales FCF Growth (g) 2% Beginning in 2020. Debt $100,000 WACC 12% # of Shares of stock 1000 Answers $47.10 b. $57.35 $73.40 Ans. Stock Price = 1 a. C