1. On January 31, 2022 you purchased a newly issued 5.6% coupon bond issued by the Dana Corporation for $1,023.56. The bond is callable at 105% of par value in 5 years from the date of issuance and matures January 31, 2048. You decide to sell the bond April 30, 2023 when the bonds yield to maturity was 4.82 percent. How much you receive from the sale of the bond (including accrued interest)?

1. Consider the following income statement for the Jasper Company for the year ended December 31, 2021 and the balance sheets for December 31, 2021 and 2020. Based on these statements, construct the cash flow identity AND provide a brief analysis of what Jaspers cash flows are indicating.

JASPER COMPANY

Balance Sheets as of December 31, 2022 and 2021

Assets
	2022	2021
Cash	$ 405	$310
Accounts receivable	3.055	2,640
Inventory	3,850	3,275
Property, plant, and equipment (net)	10,670	10,960
Total	$17,980	$17,185

Liabilities and Stockholders Equity
	2022	2021
Accounts payable	$ 2,570	$ 2,720
Current portion of long-term debt payable	0	100
Long-term debt	8,100	7,875
Common stock	5,250	5,000
Retained earnings	2,060	1,490
Total	$17,980	$17,185

JASPER COMPANY

2022 Income Statement

Sales	$9,610
Cost of goods sold	6,310
Gross profit	3,300
Depreciation expense	1,370
Earnings before interest and taxes	1,930
Interest expense	630
Earnings before taxes	1,300
Income tax expense	455
Net income	$845

1. Considering the left-hand side of the cash flow identity (cash flows from assets associated with investment activities), determine Jasper Companys free cash flow (FCF) for the year 2022.

1. Jasper Company has 1,000 shares of common stock outstanding. Under the assumption that FCFs will grow by 2 percent into the foreseeable future, compute an estimate of the price per share based on FCFs if investors require a 9 percent return.

1. If Jaspers current dividend is expected to grow at 5 percent into the foreseeable future, what would then be the estimated price per share?