From the following data,

1-calculate the cost of capital for operations (WACC). Use the capital asset pricing model to estimate the cost of equity capital. (show the regression results) (risk free return 4%).

2-Forecast Sales, cost of sales, Expenses, net income, earning per share

3-Forecast Free cash flow

4-Forecast Asset Turnover and Calculate Net Operating Assets

5-Forecast book value, return on common equity (ROCE), and residual earnings for each of the years 2018- 2022.

6-What is the per-share value of the equity at the end of 2017 based on the residual income valuation model? Discounted cash flow model?

STATEMENT OF INCOME	31/12/17	31/12/16	31/12/15	31/12/14
Sales	13,643	19,361	20,900	22,557
Sales Cost	9,814	6,308	6,866	6,315
Total profit	3,829	13,053	14,034	16,242
Other Revenues	3,486	33	1,152	802
Total Revenues	7,315	13,086	15,186	17,044
Total Expenses	6,096	11,551	12,015	10,919
Net Income Before Zakat	1,219	1,535	3,171	6,125
Zakat	889	974	1,162	1,294
Net Income	330	561	2,009	4,831

CASH FLOW	31/12/17	31/12/16	31/12/15	31/12/14
Net Income	330	561	2,009	4,831
Depreciation	5,308	5,183	4,624	4,906
Accounts Receivable	1,153	-450	-1,023	52
Inventory	-	-	-	-
Prepaid Expenses	-	-	-	-3,928
Accounts Payable	-2,207	-1,301	-1,132	-442
Other Changes in Oper. Activity	-	-	-	-
Purchases of Fixed Assets	-9,255	-10,844	-10,850	-4,746
Increase in Debts	-239	1,434	2,582	-7
Cash at Begining of Period	28,951	34,368	38,158	37,492
Cash at End of Period	24,041	28,951	34,368	38,158

BALANCE SHEET	31/12/17	31/12/16	31/12/15	31/12/14
Current Assets	32,933	38,995	43,963	47,934
Fixed Assets	75,076	71,129	59,773	57,810
Other Assets	-	-	5,694	1,431
Total Assets	108,009	110,124	109,430	107,175
Current Liabilities	10,418	12,195	12,384	12,194
Non-Current Liabilities	1,185	1,854	1,532	1,476
Shareholders Equity	96,406	96,075	95,514	93,505
Number of shares	10,150	10,150	10,150	10,150