Questions Q1. The Blue-Ground Inc. has a Net Sales of $4,800,000 in 2020. Shares outstanding of the firm is 250,000. Net Sales of the company is expected to increase by 5.5% in each year (2021, 2022 and 2023). Financial analyst of the firm has estimated the following ratios: a) Current EBIT margin of the firm is 32% and it will be constant for future. b) Current NWC turnover is 5 and it will be constant for each year c) Current Fixed Asset turnover 4 and it will be constant for each year According to the report of finance department total market value of company's long term and short-term debts is $1,950,000. Growth rate of the free cash flows after 2023 is expected as 1.75%. Cost of capital is reported as 10% and expected to be constant for the following 3 years. Tax rate of the firm is 40%. Calculate the intrinsic stock value of the firm using the template below and show your calculations for year 2023. (70 MARKS) 2020 2021 2022 2023 Net Sales Panel A EBIT Assumptions NWC Fixed Assets NOPAT ANWC AFA Panel B FCF HV NPV of FCF Debt Value Equity Value Shares Outstanding Intrinsic stock value