Use the financial statements shown below to answer the next three questions. Free cash flow is expected to grow at 3 percent after 2017. The weighted average cost of capital is 7.18 percent. The bonds are currently selling at 97.5% of par. The preferred stock has a current market value of $8,000.

Balance Sheet

	Actual 2016	Projected 2017		Actual 2016	Projected 2017
Cash	10,000	15,000	Accounts payable	20,000	35,000
Marketable securities	20,000	10,000	Notes payable	10,000	0
Accounts Receivable	25,000	35,000	Accruals	15,000	20,000
Inventory	40,000	55,000	Total current liabilities	45,000	55,000
Total Current Assets	95,000	115,000	Long term bonds	10,000	15,000
			Preferred Stock	5,000	5,000
			Common stock (par + PIC)	50,000	90,000
			Retained earnings	30,000	35,000
Net fixed assets	45,000	85,000	Total common equity	80,000	125,000
Total assets	140,000	200,000	Total liabilities & equity	140,000	200,000

Income Statement

	Actual 2016	Projected 2017
Sales	400,000	600,000
Operating expenses	378,500	450,000
Depreciation	3,000	3,500
Earnings before interest & taxes	18,500	146,500
Interest	2,500	3,000
Earnings before taxes	16,000	143,500
Taxes	8,000	71,750
Net income before preferred dividends	8,000	71,750
Preferred dividends	1,000	1,000
Net Income available for common	7,000	70,750
Common dividends	1,500	65,750
Addition to retained earnings	5,500	5,000
Number of shares	3,500	6,000

8. What is the free cash flow for 2017?

9. What is the value of operations as of 2016?

10. What is the price per share for 2016?