Build a financial model in Excel that values the companys stock based on a model of free cash flow (FCF) growth of your own design and the following additional facts.

2019 year-end debt was $800 Million. The 2018 year- end debt was $750 Million

Whitby Corp.s 2019 year-end cash was $37.5 Million

The company has 50,500,000 shares outstanding, current stock price is $28.00, stock beta is 1.40, risk-free rate is 2%, the expected return of the market is 10%, and the Future FCF growth is expected to be 2%.

1) Show the calculation of the annual free cash flows (FCFs) for the company.

2) Value the company's stock using 2019 FCF as the base year free cash flow.

3) Value the company's stock price using the 5 year average FCF as the base free cash flow.

4) Given the current market price of the company's stock, which base FCF is closer to the markets estimate?

You will need to calculate the firms weighted average cost of capital (WACC) in order to value the FCF.

Use the information below to calculate on excel:

31-Dec-19	31-Dec-18	31-Dec-17	31-Dec-16	31-Dec-15
Net income	$90,500,000	$115,000,000	$145,500,000	$55,500,000	$123,750,000
Depreciation	$85,500,000	$83,000,000	$80,000,000	$77,000,000	$75,000,000
Changes in net working capital	-19,500,000	26,500,000	-35,000,000	45,000,000	-28,000,000
Capital expenditures	-33,500,000	-31,000,000	-30,500,000	-27,500,000	-25,500,000
Net interest paid before taxes	-37,500,000	-36,500,000	-38,000,000	-37,750,000	-38,750,000
Tax rate	35.50%	31.00%	32.60%