Problem 3 (15 points): The financial statements of CHILE results for 2019 and the projections for 2000. The use cash flow S35M and is expected to grow at a 6% rate after 2020. WN share for 12/31/2019? SOT CHILECTRA Inc. are shown below, with the actual low (FCF) for 12/31/2020 is projected to be If the WACC is 11%, what is the intrinsic price per was Income Statements for the Year Ending December 31 (Millions of Dollars Except for Per Share Data) Actual 11 WACC 1197 10.8 43.29 45.29 Projected 2020 $530,0 5381.6 $39.8 $421.4 S108.6 S16,0 592.6 $37.0 S55,6 57.4 2019 SS000 5360.0 5375 397.5 S102.5 $13.9 588.6 $35.4 553.2 Sales Costs except depreciation Depreciation Total operating costs EBIT Less Interest Earnings before taxes (EBT) Taxes (40%) Net income before preferred dividends Preferred dividends Net income available for common dividends Common dividends Addition to retained earnings Number of shares Dividends per share - - .06) 56.0 S47.2 $40.8 56.4 $48.2 $29.7 S18.5 10 To $2.97 $4.08 Actual Projected 2019 2020 $5.6 $51.9 S56.2 Balance Sheets for December 31 (Millions of Dollars) Assets Cash Marketable securities Accounts receivable Inventories Total current assets Net plant and equipment Total assets $5.3 $49.9 S53.0 $106.0 S214.2 $375.0 $589.2 $112.4 S226.1 $3975 $623.6 Liabilities and equity Accounts payable Notes payable Accruals Total current liabilities Long-term bonds Preferred stock Common stock Retained earnings Total common equity Total liabilities and equity 9.6 $69.9 $27.5 $107.0 $140.8 $35.0 S160.0 $146.4 S306.4 $589.2 S11.2 $74.1 $28.1 $113.4 $148.2 $37.1 $160.0 $164.9 $324.9 S623.6