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Answer the following questions based off: Good Times Inc. has current sales of $ 7 , 5 0 0 ( in millions ) , an

Answer the following questions based off:
Good Times Inc. has current sales of $7,500(in millions), an operating ratio of 6%, a capital requirement ratio of 45%, a tax rate of 40% and a corporate cost of capital of 8%. Under new management sales are expected to grow 15% in Yr 1,15% in Yr 2,10% in Yr 3,5% in Yr 4 and then grow at a constant rate of 4% after Yr 4.
In addition, the firm has the following balance sheet items:
(000,000)
Short-term investments = $25
Short-term debt (notes payable)= $250
Long-term debt (bonds)= $300
Preferred stock = $30
Number of shares of common stock =75
9. What is the firm's free cash flow at the end of Yr 1?
$81.00
$72.00
$67.50
$11.25
$128.96
10. What is the firms horizon value at the end of Yr 4?
$12,198.08
$13,011.28
$11,488.88
$9,035.50
$14,637.70
11. What is the firms total value today?
$12,308.94
$8,981.33
$11,228.96
$10,312.54
$9,669.57
12. What is the firms current equity value of price per share?
$121.19
$150.26
$146.91
$129.77
$112.02

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