Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Consider recent financials for Ellie's Essentials LLC: Balance Sheet 2020 2019 Current Assets $11,230.00 $10,000.00 Net PPE $31,000.00 $30,000.00 Total Assets $42,230.00 $40,000.00 Current Liabilities

Consider recent financials for Ellie's Essentials LLC: Balance Sheet 2020 2019 Current Assets $11,230.00 $10,000.00 Net PPE $31,000.00 $30,000.00 Total Assets $42,230.00 $40,000.00 Current Liabilities $8,662.00 $8,000.00 Long-term debt $13,001.00 $12,000.00 Total Liabilities $21,663.00 $20,000.00 Shareholder Equity $20,567.00 $20,000.00 Liabilities and Equity $42,230.00 $40,000.00 Income Statement 2020 2019 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 (38.00%) $1,397.64 $1,254.00 NET INCOME $2,280.36 $2,046.00 Going forward, analysts have forecasted the following free cash flows: $2,400.00 in 2021, and $2,600.00 in 2022. After that point, analysts expect free cash flows to grow at 5.00%. The firm has no short-term debt or preferred stock, and there are 1,000 shares outstanding. The firm's cost of capital is 12.00%. Estimate the firms price per share using the discounted cash flow model. Submit Answer format: Currency: Round to: 2 decimal places

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Numerical Methods In Finance

Authors: René Carmona, Pierre Del Moral, Peng Hu, Nadia Oudjane

2012th Edition

3642257453, 978-3642257452

More Books

Students also viewed these Finance questions

Question

Discuss the importance of positioning in IMC planning.

Answered: 1 week ago