the end of the tol the forecast period. Assume thall to the growth rate at the horizon.) How does the with the current amount of total net operating capital? e. Calculate the intrinsic price per share of common equity as ofI ASE pply's stock price had been lagging its industry averages, .. aiden Lee. Lee had brought in Ashley of directors brought in a new finance MBA who had been working for a consulting company, to replace the and Le asked Novak to develop the financial planning section of the strategic l old o previous job, Novak's primary task had been to help dients develop financial and that was one reason Lee hired her Novak began by comparing Hatfield's financial ratios to the industry avera any ratio was substandard, she discussed it with the responsible manager to see could be done to improve the situation. The following data show Hatfield' financial statements plus some ratios and other data that Novak plans to analysis. use in her Hatfield Medical Supply (Millions of Dollars, Except Per Share Data) Balance Sheet, 12/31/2016 Cash Accts. rec. Inventories Total CA Net fixed assets Total assets Income Statement, Year Ending 2016 Sales Op. costs (excl. depr.) Depreciation s 20 $2,000 1,800 280 400 s 700 EBIT $1.200 Pre-tax earnings $ 80 Net income $ 80 Dividends s 580 Common shares s 150 500 Interest S 110 Taxes (40%) Accts. pay. & accruals Line of credit Total CL Long-term debt Total liabilities S 66 Common stock Retained earnings Total common equ. Total liab.&equity 500 Add. to RE 420 EPS 200 DPS s 200 $ 460 100 $ 6.60 s 620 Ending stock price $52.80 $1200