Dakota Corp. had the following operating results for 2022 & 2021. Dakota paid dividends of $50,000 per year for both years and made capital expenditures of $100,000 in both years. The company's stock price in 2021 was $4.00 and $4.50 in 2022. In 2022, the industry average earnings multiple was 10 and the free cash flow and sales multiples were 16 and 1.35, respectively. The company is publicly owned and has 1,400,000 shares of outstanding stock at the end of 2022.

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 Dakotas Equity Book Value (c.) to the Market Value (d.). Discuss conceptually (not differences in the calculations) why these amounts are different.

Balance Sheet, Dec 31, Income Statement, for year ended Dec 31, Sales Cash Flow From Operations Net Income Plus Depreciation Expense + Decrease (-inc) in AccRec. and Inv. + Increase (-dec) in Cur. Liabl. Cash Flow from Operations Balance Sheet, Dec 31, Income Statement, for year ended Dec 31, Sales Cash Flow From Operations Net Income Plus Depreciation Expense + Decrease (-inc) in AccRec. and Inv. + Increase (-dec) in Cur. Liabl. Cash Flow from Operations