Determine Wright's firm value, intrinsic share price, and intrinsic price-to-earnings ratio for West Airlines and jetGreen Airlines.

(I attached the spreadsheet, so please fill out those).

West 2021 $8,000 2,450 2,010 1.650 1,860 360 1,500 600 $ 900 $ .45 jetGreen 2021 $4,000 1,420 1,075 9.05 600 300 300 120 $ 180 $ 1.50 Income Statements: Revenues Salaries expense Fuel expense Other operating expenses Operating income Interest expense Pretax income Income tax expense Net income Earnings per share Balance Sheets: Cash Accounts receivable Equipment, net of depreciation Other assets Total assets Current liabilities Bonds payable Common stock Retained earnings Total liabilities and s/equity 12/31/21 $ 500 800 6,500 1.200 $9,000 12/31/21 $ 150 350 3,600 900 $5,000 $ 600 4,000 2,000 2,400 9,000 $300 3,000 1.200 5.00 $5,000 2021 $900 200 (110) 990 2021 $180 90 (20) 250 Statements of Cash Flows: Net income + Depreciation expense Change in current accounts Cash flows from operating activities Cash flows from investing activities: Purchase of equipment Cash flows from financing activities: Payment of dividends Net change in cash (500) (160) (350) $ 140 (40) $ 50 Wright began by determining each firm's free cash flow for 2021. He projected that West's free cash flows would increase by $50 million annually during the four-year fore- cast period. Wright concluded that jetGreen will realize annual increases of free cash flows of $20 million annually for the four-year forecast period. The analyst is confident about estimating the airlines free cash flows through 2025. After that four-year forecast horizon, however, Wright concluded that it would be necessary to calculate the terminal values of the firms free cash flows. Wright estimated that each airline will grow 2% annually beyond 2025 because both discount airlines will become mature firms by that time. The analyst thinks that West will retain a more conservative capital structure than jetGreen in the long-run. Consequently, Wright estimated West's long-term weighted average cost of capital at 7% and jetGreen's weighted average cost of capital at 8%. Wright gathered the following present value of money factors to help him value the firms. Period 2% 7% 8% 1 .98039 .93458 92593 2 .96117 87.344 .85734 3 .94232 .81630 .79383 4 .92385 -76290 .73503 Wright believed that West's financial performance would be better than that of jetGreen in the near future. Finally, Wright noted the current market price for each air carrier's stock on December 31, 2021. West Airlines closing share price for 2021 was $7.26, while jetGreen closed at $22.95 per share. West jetGreen Market Share Price EPS Market P/E Ratio Net income EPS Number of shares Share Price Firm Value EBIT Net of tax Net EBIT PPE purchase Depreciaiton Net investment West jetGreen Net EBIT Net investment FCF--2021 FCF--2022 FCF--2023 FCF--2024 FCF--2025 TV FCF P.V. Factor PV of FCF West FCF--2022 FCF--2023 FCF--2024 FCF--2025 TV Firm Value FCF P.V. Factor PV of FCF jetGreen FCF--2022 FCF--2023 FCF--2024 FCF--2025 TV Firm Value West jetGreen Firm Value Bonds payable Common equity value Number of shares Intrinsic share value EPS Intrinsic P/E Ratio West 2021 $8,000 2,450 2,010 1.650 1,860 360 1,500 600 $ 900 $ .45 jetGreen 2021 $4,000 1,420 1,075 9.05 600 300 300 120 $ 180 $ 1.50 Income Statements: Revenues Salaries expense Fuel expense Other operating expenses Operating income Interest expense Pretax income Income tax expense Net income Earnings per share Balance Sheets: Cash Accounts receivable Equipment, net of depreciation Other assets Total assets Current liabilities Bonds payable Common stock Retained earnings Total liabilities and s/equity 12/31/21 $ 500 800 6,500 1.200 $9,000 12/31/21 $ 150 350 3,600 900 $5,000 $ 600 4,000 2,000 2,400 9,000 $300 3,000 1.200 5.00 $5,000 2021 $900 200 (110) 990 2021 $180 90 (20) 250 Statements of Cash Flows: Net income + Depreciation expense Change in current accounts Cash flows from operating activities Cash flows from investing activities: Purchase of equipment Cash flows from financing activities: Payment of dividends Net change in cash (500) (160) (350) $ 140 (40) $ 50 Wright began by determining each firm's free cash flow for 2021. He projected that West's free cash flows would increase by $50 million annually during the four-year fore- cast period. Wright concluded that jetGreen will realize annual increases of free cash flows of $20 million annually for the four-year forecast period. The analyst is confident about estimating the airlines free cash flows through 2025. After that four-year forecast horizon, however, Wright concluded that it would be necessary to calculate the terminal values of the firms free cash flows. Wright estimated that each airline will grow 2% annually beyond 2025 because both discount airlines will become mature firms by that time. The analyst thinks that West will retain a more conservative capital structure than jetGreen in the long-run. Consequently, Wright estimated West's long-term weighted average cost of capital at 7% and jetGreen's weighted average cost of capital at 8%. Wright gathered the following present value of money factors to help him value the firms. Period 2% 7% 8% 1 .98039 .93458 92593 2 .96117 87.344 .85734 3 .94232 .81630 .79383 4 .92385 -76290 .73503 Wright believed that West's financial performance would be better than that of jetGreen in the near future. Finally, Wright noted the current market price for each air carrier's stock on December 31, 2021. West Airlines closing share price for 2021 was $7.26, while jetGreen closed at $22.95 per share. West jetGreen Market Share Price EPS Market P/E Ratio Net income EPS Number of shares Share Price Firm Value EBIT Net of tax Net EBIT PPE purchase Depreciaiton Net investment West jetGreen Net EBIT Net investment FCF--2021 FCF--2022 FCF--2023 FCF--2024 FCF--2025 TV FCF P.V. Factor PV of FCF West FCF--2022 FCF--2023 FCF--2024 FCF--2025 TV Firm Value FCF P.V. Factor PV of FCF jetGreen FCF--2022 FCF--2023 FCF--2024 FCF--2025 TV Firm Value West jetGreen Firm Value Bonds payable Common equity value Number of shares Intrinsic share value EPS Intrinsic P/E Ratio