Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following company has 4,500 common shares outstanding. What is the free cash flow per share of the company for 2019? (Hint: you need to

The following company has 4,500 common shares outstanding. What is the free cash flow per share of the company for 2019? (Hint: you need to find the free cash flow (CF(A)) then determine the free cash flow per share)

Gamestop Corporation

2019 Income Statement

Net sales

71,000

Cost of goods sold

32,000

Selling, general, and administrative expenses

6,000

Depreciation

4,200

Earnings before interest and taxes

28,800

Interest

1,500

Pretax income

27,300

Taxes

6,500

Net income

20,800

Gamestop Corporation

2018 and 2019 Balance Sheets

2018

2019

2018

2019

Cash

17,000

18,000

Accounts payable

12,500

16,000

Accounts receivable

18,000

24,000

Accrued expenses

28,000

30,000

Inventory

10,500

15,000

Current liabilities

40,500

46,000

Current assets

45,500

57,000

Long-term debt

54,000

64,000

Net fixed assets

106,000

115,000

Owners' equity

57,000

62,000

Total assets

151,500

172,000

Total liabilities and equity

151,500

172,000

$1.26

$1.38

$1.50

$1.62

$1.74

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Complete Guide To Capital Markets For Quantitative Professionals

Authors: Alex Kuznetsov

1st Edition

0071468293, 978-0071468299

More Books

Students also viewed these Finance questions

Question

Why do you float higher in salt water than in fresh?

Answered: 1 week ago

Question

How can Trip 7 prevent future supply chain uncertainties?

Answered: 1 week ago