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Good Times Inc. has current sales of $7,500 (in millions), an operating ratio of 6%, a capital requirement ratio of 40%, a tax rate of

Good Times Inc. has current sales of $7,500 (in millions), an operating ratio of 6%, a capital requirement ratio of 40%, a tax rate of 40% and a corporate cost of capital of 8%. Under new management sales are expected to grow 15% in Yr 1, 15% in Yr 2, 10% in Yr 3, 5% in Yr 4 and then grow at a constant rate of 4% after Yr 4. In addition, the firm has the following balance sheet items: (000,000) Short-term investments = $25 Short-term debt (notes payable) = $250 Long-term debt (bonds) = $300 Preferred stock = $30 Number of shares of common stock = 75

What is the firm's free cash flow at the end of Yr 1?

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$34.77

$128.96

$72.00

$81.00

$67.50

What is the firms horizon value at the end of Yr 4?

Group of answer choices

$8,326.23

$14,637.70

$9,035.50

$12,198.08

$13,011.28

What is the firms total value today?

Group of answer choices

$9,669.57

$10,312.54

$11,228.96

$12,308.94

$11,598.48

What is the firms current equity value of price per share?

Group of answer choices

$146.91

$121.19

$115.85

$129.77

$150.26

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