Use the following information to answer questions 1-7 Consider the following abbreviated financial statements for Boathead Enterprises: BOATHEAD ENTERPRISES 2014 and 2015 Partial Balance Sheets Assets Liabilities and Owners Equity 2014 2015 2014 2015 Current assets $ 946 $ 1,008 Current liabilities $ 385 $ 404 Net fixed assets 3,907 4,600 Long-term debt 2,029 2,197 Equity 2,439 3,007 BOATHEAD ENTERPRISES 2015 Select Income Statement Info Sales $ 12,340 Costs 5,920 Depreciation 1,050 Interest paid 190 The tax rate is 35%. Long term debt trades at par. The firm has 1,000 shares outstanding. Free Cash Flow to the Firm will grow at 2% and the Free Cash Flow to Equity will grow at 7% forever. The weighted average cost of capital is 12%. The cost of equity is 20%. Construct the income statement. Then answer the following 7 questions. 1. What is the change in net working capital for 2015? $______ 2. What is the change in gross fixed assets, i.e. capital expenditures, for 2015? $______ 3. What is the Free Cash Flow to the Firm for 2015? $______ 4. What is the Value of the Firm (Assets)? $______ Robert Dubil Homework #9 FINAN 5000-090 2 5. What is the stock price per share using the discounted FCFF valuation? $______ 6. What is the Free Cash Flow to Equity for 2015? $______ 7. What is the stock price per share using the discounted FCFE valuation? $______