LAMDA Corp is considering acquiring CANVAS INT. You are heading the team that is valuing the potential target firm. CANVAS INTs revenue growth rate is 10.2%, its COGS is 58% of sales, SG&A is 22% of sales, and NWC is 25% of sales. The forecast period for the valuation is 5 years, after which your team will apply a steady state growth rate is 6%. You are using a WACC rate of 12% and a tax rate is 35%. Initial year zero revenue is $9,100. Depreciation is $1200 per year, CAPEX is $1250 per year. The forecast period is 5 years.

1. What are free cash flows per year?
2. What is the terminal value (steady state value)?
3. What is Enterprise Value for this firm?
4. The firm has cash of $550, debt of $2000, and preferred stock of $750. What is the value of equity?
5. If there are 120 shares outstanding, what is stock price?