Choi Corp. had the following operating results for fiscal years ended 2022-2021. In addition, the company paid dividends in both 2022 and 2021 of $60,000 per year. Capital expenditures in both years equaled $30,000 per year. The company's stock price in 2022 was $8 and $7 in 2021. The industry average earnings multiple was 9 in 2022 and the 2022 free cash flow and sales multiples were 16 and 1.5, respectively. The company is publicly owned and has 1,200,000 shares of outstanding stock at the end of 2022.

Balance Sheet, Dec 31,
2022	2021
Cash	$	340,000	100,000
Accounts Receivable	$	350,000	400,000
Inventory	$	250,000	300,000
Total Current Assets	$	940,000	800,000
Long-lived Assets	1,080,000	1,100,000
Total Assets	$	2,020,000	1,900,000
Current Liabilities	$	200,000	300,000
Long-term Debt	600,000	500,000
Shareholder Equity	1,220,000	1,100,000
Total Debt and Equity	$	2,020,000	1,900,000

Income Statement, for year ended Dec 31,
2022	2021
Sales	$	4,750,000	$	4,500,000
Cost of Sales	4,100,000	4,000,000
Gross Margin	650,000	500,000
Operating Expenses	350,000	400,000
Operating Income	300,000	100,000
Taxes	120,000	40,000
Net Income	$	180,000	$	60,000

Cash Flow From Operations	2022	2021
Net Income	$	180,000	$	60,000
Plus Depreciation Expense	50,000	50,000
+ Decrease (-inc) in AccRec. and Inv.	100,000	-
+ Increase (-dec) in Cur. Liabl.	(100,000	)	-
Cash Flow from Operations	$	230,000	$	110,000

Questions and required calculations for Choi Corp. follow on the next page.

21. (10 points) Using the data and information from the previous page, calculate the following for Choi Corp. a. Calculate the 2022 value of the company using the earnings multiple. b. Calculate the 2022 value of the company using the free cash flow multiple c. Calculate the 2022 book value of the company's equity. d. Calculate the 2022 market value of the company. e. Compare Chois Equity Book Value (c.) to the Market Value (d.). Discuss conceptually (not differences in the numerical calculations) the difference between these two amounts.