Background Information - INCOME STATEMENTS Net sales COGS (excl. depr.) Depreciation SG&A EBIT Interest expense Pre-tax earnings (EBT) Taxes (25%) Nl before pref. dlv. Preferred div. Net income 2018 $3,700 $2,960 $90 $0 $650 $60 $590 $148 $443 $4 $439 2019 $4,070 $3,460 $99 $0 $512 $54 $458 $114 $343 $4 $339 BALANCE SHEETS Assets Cash ST Investments Accounts receivable Inventories Total CA Net PP&E Total assets 2018 $15 $65 $315 $415 $810 $870 $1,680 2019 $15 $30 $347 $518 $910 $ $1,007 $1,917 F Other Data Dividends Retained Earnings Tax rate Shares of common stock WACC Expected FCF growth $150 $289 25% 100 5.0% $150 $189 25% 100 5.0% 0% Llabilities and equity Accounts payable Accruals Notes payable Total CL Long-term bonds Total liabilities Preferred stock Common stock Retained earnings Total common equity Total llabs. & equity $30 $60 $130 $220 $580 $800 $40 $130 $710 $840 $1,680 $38 $71 $143 $252 $596 $848 $40 $130 $899 $1,029 $1,917 Calculate the following - a. What is the FCF for this company in 2019? Answers a. b. $110.60 $130.23 $378.60 C b. Assuming that the FCF you calculated in the previous problem continues forever unchanged, what is an estimate of the share price of the company? Answers a. b. C. $18.55 $26.58 $70.71