Question
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 |
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