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Consider recent financials for Ellie's Essentials LLC: Balance Sheet 2018 2017 Current Assets $11,438.00 $10,000.00 Net PPE $31,000.00 $30,000.00 Total Assets $42,438.00 $40,000.00 Current Liabilities
Consider recent financials for Ellie's Essentials LLC:
Balance Sheet
| 2018 | 2017 | |
|---|---|---|
| Current Assets | $11,438.00 | $10,000.00 |
| Net PPE | $31,000.00 | $30,000.00 |
| Total Assets | $42,438.00 | $40,000.00 |
| Current Liabilities | $8,736.00 | $8,000.00 |
| Long-term debt | $12,728.00 | $12,000.00 |
| Total Liabilities | $21,464.00 | $20,000.00 |
| Shareholder Equity | $20,974.00 | $20,000.00 |
| Liabilities and Equity | $42,438.00 | $40,000.00 |
| Income Statement | 2018 | 2017 |
|---|---|---|
| SALES | $11,000.00 | $10,000.00 |
| COGS | $4,400.00 | $4,000.00 |
| GROSS PROFIT | $6,600.00 | $6,000.00 |
| S&A | $1,100.00 | $1,000.00 |
| Depreciation | $550.00 | $500.00 |
| EBIT | $4,950.00 | $4,500.00 |
| INTEREST | $1,272.00 | $1,200.00 |
| EBT | $3,678.00 | $3,300.00 |
| TAXES (36.00%) | $1,324.08 | $1,188.00 |
| NET INCOME | $2,353.92 | $2,112.00 |
Going forward, analysts have forecasted the following free cash flows: $2,600.00 in 2019, and $2,600.00 in 2020. After that point, analysts expect free cash flows to grow at 3.00%. The firm has no short-term debt or preferred stock, and there are 1,000 shares outstanding. The firm's cost of capital is 10.00%.
Estimate the firms price per share using the discounted cash flow model.
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