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Consider the financial statements for Guzman Enterprises shown below. Assets Cash Marketable Securities Accounts Receivable Inventory Total Current Assets Property, Plant, and Equipment Total Assets

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Consider the financial statements for Guzman Enterprises shown below. Assets Cash Marketable Securities Accounts Receivable Inventory Total Current Assets Property, Plant, and Equipment Total Assets Liabilities and Equity Accounts Payable Notes Payable Accruals Total Current Liabilities Long-term Bonds Guzman Enterprises: Balance Sheet Total Liabilities Common Stock Retained Earnings Total Liabilities & Stockholders' Equity 2020 4,800 2,600 19,500 35,000 61,900 79,000 140,900 7,800 13,000 10,200 31,000 40,000 71,000 35,000 34,900 140,900 2021 4,500 3,000 22,500 41,000 71,000 85,000 156,000 6,900 15,000 11,100 33,000 42,000 75,000 35,000 46,000 156,000 Guzman Enterprises Income Statement, for year ended 12/31/2021 Sales Revenue Cost of Goods Sold Operating Expenses Depreciation Operating Income Interest Expense Earnings Before Taxes Taxes (25%) Net Income (a)Calculate the firm's free cash flow in 2021. 180,000.00 120,000.00 8,000.00 8,500.00 43,500.00 4,000.00 39,500.00 9,875.00 29,625.00 (b) Suppose that the company's free cash flow is expected to grow at a rate of 10% for the next 2 years after which it will settle to a long-term growth rate of 5%. The company has no preferred stock, 200,000 shares of common stock outstanding, and the market value of its debt is $50,000. If the firm's weighted average cost of capital is 12%, what is the price of each share of common stock

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