I need answer to : 3c) multiples-based method - free cash flow , and 4) Discounted cash flow method

comDlnea Tirm a na IS WIlling pay snarenolaers 4u casn per snare Tor tner stOCK, wnICn Is greater tnan tne current stoc the stock has traded at about $35 in recent months. Summary financial information about BPP follows. BROOKS PLUMBING PRODUCTS INC Selected Financial Information For the Years Ended December 31 2019 Industry Average 2019 2018 Cash Accounts receivable Inventory Long-lived assets $ 80,109,778 $ 3,646,227 56,968,465 87,503,771 39,855,416 60,092,645 Gross book value 167,468,377 143,968,377 100,810,809 96,077,302 170,777,409 188,655,338 68,924,002 67,525,209 119,235,766 121,204,274 32,187,364 38,094,302 126,131,338 87,831,369 23,690,000 13,180,336 669,434,771 640,676,465 499,607,788 478,441,001 102,857,355 134,955,229 Net book value Replacement cost Liquidation value Current liabilities Long-term debt Shareholders' equity Capital expenditures Sales Cost of sales Operating expense* Income tax rate Depreciation expense Dividends Year-end stock price Number of outstanding shares Sales multiplier Free cash flow multiplier Earnings multiplier Cost of capital Accounts receivable turnover Inventory turnover Current ratio Quick ratio Cash flow ratio Free cash flow ratio Gross margin percentage Return on assets (net book value) Return on equity Earnings per share 38% 38% 38.00% 18,956,493 15,854,254 1,440,000 24.89 27,589,554 24,663,554 2,940,000 37.68$ 1.50 8.80 13.60 5.1% 5.1% 5.40 8.60 1.70 1.10 1.50 1.10 30 , 0% 29 , 0% 27 0% $2.34 Operating expense includes depreciation expense 1 Requlred: 1. What is the valuation of BPP (for 2019) using the market value method? 2 What is the valuation of BPP (for 2019) using the book value method? 3. What are the valuations of BPP (for 2019) using the multiples-based methods for sales, earnings, and free cash flow? 4. What is the estimated value for BPP using the discounted free cash flow method, assuming that the 2019 amount of free cash flow continues indefinitely? 5. Which of the methods would you use? 6. Is the GSI offer a good one? (For requlrements 1 to 4, round your answers to the nearest whole doller amount.) Answer is not complete. Market value of equity method 2. Book value of equity method 3. Multiples-based method- Sales 1,039,574,395 126,131,338 1,004.152,157 564,887.898 Multiples-based method Earnings Multiples-based method Free cash flow 4. Discounted cash flow method Which of the methods would you use? Market value of equity method 6. Is the GSl offer a good one? comDlnea Tirm a na IS WIlling pay snarenolaers 4u casn per snare Tor tner stOCK, wnICn Is greater tnan tne current stoc the stock has traded at about $35 in recent months. Summary financial information about BPP follows. BROOKS PLUMBING PRODUCTS INC Selected Financial Information For the Years Ended December 31 2019 Industry Average 2019 2018 Cash Accounts receivable Inventory Long-lived assets $ 80,109,778 $ 3,646,227 56,968,465 87,503,771 39,855,416 60,092,645 Gross book value 167,468,377 143,968,377 100,810,809 96,077,302 170,777,409 188,655,338 68,924,002 67,525,209 119,235,766 121,204,274 32,187,364 38,094,302 126,131,338 87,831,369 23,690,000 13,180,336 669,434,771 640,676,465 499,607,788 478,441,001 102,857,355 134,955,229 Net book value Replacement cost Liquidation value Current liabilities Long-term debt Shareholders' equity Capital expenditures Sales Cost of sales Operating expense* Income tax rate Depreciation expense Dividends Year-end stock price Number of outstanding shares Sales multiplier Free cash flow multiplier Earnings multiplier Cost of capital Accounts receivable turnover Inventory turnover Current ratio Quick ratio Cash flow ratio Free cash flow ratio Gross margin percentage Return on assets (net book value) Return on equity Earnings per share 38% 38% 38.00% 18,956,493 15,854,254 1,440,000 24.89 27,589,554 24,663,554 2,940,000 37.68$ 1.50 8.80 13.60 5.1% 5.1% 5.40 8.60 1.70 1.10 1.50 1.10 30 , 0% 29 , 0% 27 0% $2.34 Operating expense includes depreciation expense 1 Requlred: 1. What is the valuation of BPP (for 2019) using the market value method? 2 What is the valuation of BPP (for 2019) using the book value method? 3. What are the valuations of BPP (for 2019) using the multiples-based methods for sales, earnings, and free cash flow? 4. What is the estimated value for BPP using the discounted free cash flow method, assuming that the 2019 amount of free cash flow continues indefinitely? 5. Which of the methods would you use? 6. Is the GSI offer a good one? (For requlrements 1 to 4, round your answers to the nearest whole doller amount.) Answer is not complete. Market value of equity method 2. Book value of equity method 3. Multiples-based method- Sales 1,039,574,395 126,131,338 1,004.152,157 564,887.898 Multiples-based method Earnings Multiples-based method Free cash flow 4. Discounted cash flow method Which of the methods would you use? Market value of equity method 6. Is the GSl offer a good one