At the end of $2023,$ ABC company had total sales $$15$ million. They had $300,000$ shares outstanding. We

expect sales growth to be $8\%$ per year for the next $5$ years. After that we expect sales growth to be $4\%$

into perpetuity. The company$$s profit margin is $24\%$ and the company has a return on equity of $16\%.$

The cost of equity is $11\%.$

Forecast:

$1)$ Sales per Share

$2)$ Profit $($earnings per share$)$

$3)$ Free cash flow to equity $($per share$)$ for the next $5$ years, along with a terminal value beyond the

$5$ years.

$4)$ Determine the intrinsic value of the stock.

$5)$ How much of the intrinsic value comes from our estimate of future growth $($PVGO$)?$