16. Corgi Corp. had the following operating results for 2020 & 2019. Corgi Corp. paid dividends of $80,000 per year for both years and made capital expenditures of $230,000 in both years. The company's stock price in 2019 was $14.20 and $12.50 in 2020. In 2020, the industry average earnings multiple was 8 and the free cash flow and sales multiples were 7 and 1.35, respectively. The company is publicly owned and has 450,000 shares of outstanding stock at the end of 2020.

Balance Sheet, Dec 31,
2020				2019
Cash	$		397,710		$		200,000
Accounts Receivable	$		209,700		$		425,000
Inventory	$		409,700		$		300,000
Total Current Assets	$		1,017,110		$		925,000
Long-lived Assets		1,773,870				2,000,000
Total Assets	$		2,790,980		$		2,925,000
Current Liabilities	$		610,445		$		500,000
Long-term Debt		644,425				600,000
Shareholder Equity		1,536,000				1,825,000
Total Debt and Equity	$		2,790,870		$		2,925,000

Using the data and information from the previous page, calculate the following for Corgi Corp.

1. Calculate the 2020 value of the company using the earnings multiple.

2. Calculate the 2020 value of the company using the free cash flow multiple

3. Calculate the 2020 book value of the company's equity.

4. Calculate the 2020 market value of the company.

5. Compare Corgis Equity Book Value (c.) to the Market Value (d.). Discuss conceptually (not differences in the calculations) the difference between these two amounts.