5. Consider the fol Calculate AND interpret the company's free cash flow in 2019. Suppose you are interested in using the corporate valuation model to estimate the value of the company's stock. You estimate free cash flow will grow at a rate of 25% over the next 3 years and then fall to a permanent rate of 6%. The market value of the firm's debt is approximately $5 million, the firm has 2 million shares of common stock outstanding, and a cost of capital of 9%. What is the price per share? 2019 2018 Assets Delicious Cola Company Balance Sheet Year Ending December 31, 2018 and 2019 (S in thousands) 2019 2018 Liabilities & Stockholders Equity Current Liabilities $1,638 $683 Accounts Payable $207 $966 Notes Payable $1,850 $2,700 $2,230 $3,100 Current Assets Cash and equivalents Short-term investments Accounts receivable Inventories $2,531 $1,342 $2,142 $1,310 $383 $4,933 $511 $5,841 $695 $6,413 $17,061 $752 $5,853 $15,845 Other current assets Total current assets Net Plant, property & equipment $9,250 $14,183 $7,180 $13,021 Accrued Wages Total current liabilities Long-term bonds Total liabilities Stockholders' Equity Common Stock Retained Earnings Total Liabilities & Stockholders' Equity $1,517 $7,774 $23,474 $1,309 $7,368 $21,698 Total Assets $23,474 $21,698 Delicious Cola Company Income Statement Year Ending December 31, 2019 (S in thousands) Sales $25,112 Cost of goods sold $11,497 Selling, general & administrative $7,457 expenses depreciation $1,112 Operating Income $5,046 Interest expense $178 Taxable income $4,868 Taxes (35%) $1,703.80 Net Income $3,164.20