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5) The free cash flow to equity of Firm C is $30,000 now. The growth rate of FCFE is 10% for two years and the growth rate is 8% then. The WACC is 9%. The required rate of equity is 12%. The market value of debt is $300,000. The share outstanding is 10,000. What is the stock price?

6. (10 points) Sales is $40,000, Earnings is $10,000 and Book value is $50,000 for Firm A. Firm A has 10,000 shares outstanding. Firm B, C, D are firms in same industry. What is the stock price now? P/S ratio P/E ratio P/B ratio Firm B 1.2 1.5 0.7 Firm C 0.9 2.4 1.1 Firm D 0.7 3.1 0.8 7. (20 points) Please compare the two companies in five aspects, liquidity, solvency, activity, profitability, and valuation. Please point out and explain whether all five aspects can be evaluated based on the information provided. Also, compare the two companies in the Dupont Analysis Framework. Company A ($) Company B ($) 6,000 Revenue 4,500 Net income 50 Current assets Total assets Current liabilities Total debt Shareholders' equity 40,000 100,000 10,000 60,000 30,000 1,000 60,000 700,000 50,000 150,000 500,000