Questions Q1. The Red-Blen Inc. produces air-condition materials in Denmark. The company has become the third largest producer for cooling items in the market with $3,500,000 of Net Sales at the end of 2020. As of today (31.12.2020), shares outstanding of the firm is 185,000. Net Sales of the company is expected to increase by 7% 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 45% and it will be constant for future. b) Current NWC turnover is 3 and it will be constant for each year c) Current Fixed Asset turnover 6 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 $2,252,000. Growth rate of the free cash flows after 2023 is expected as 4%. Cost of capital is reported as 8% and expected to be constant for the following 3 years. Tax rate of the firm is 35%. Calculate the intrinsic stock value of the firm using the template below and show your calculations for year 2023. (70 MARKS) 2023 2020 2021 2022 Net Sales Panel A EBIT Assumptions NWC Fixed Assets NOPAT ANWC AFA FCF HV Panel B NPV of FCF Debt Value Equity Value Shares Outstanding Intrinsic stock value