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A non-dividend paying company is expected to begin paying dividends, 4 years from now. The expected dividend at that time will be $1.5 and their growth rate is expected to be constant 4% forever. If the required return on this company is 11%, what is the value of the stock today? $18.78 $16.37 $15.71 $13.38 $11.55 The market multiples of 3 companies A, B and Care given in the table below. You are an analyst trying to value Company D's stock price. The information about company D is given below. Enterprise Multiples P/E P/ECF P/BV P/S Company D EPS A 16.5 8.5 4.3 3.2 Values 28 B 17.5 7.5 5.5 2.5 18.5 7.67 3.2 3.6 The next 2 questions are based on the following: 2017 2018 Cash Accounts Receivabl Inventories Total Current Assets Fixed Assets, Net Total Assets $50,000 200,000 450,000 700,000 300,000 $1,000,000 $85,000 340,000 620,000 1,045,000 380,000 $1,425,000 Accounts Payable $40,000 Accruals 50,000 Bank Loan 80,000 Total Current Liabilities 270,000 Long-Term Debt 400,000 Common Stock ($1 par) 50,000 Paid-in Capital 200,000 Retained Earnings 80,000 Total Liab. & Equity $1,000,000 $200,000 100,000 120,000 420,000 595,000 50,000 200,000 160,000 $1,425,000 Sales $1,300,000 Cost of Goods Sold 780,000 Gross Profit 520000 Marketing 130,000 General & Administrative 150,000 Depreciation 40.000 EBIT 200,000 $2,350,000 1.240,000 1,110,000 190,000 150,000 65.000 705,000 Sales $1,300,000 Cost of Goods Sold 780.000 Gross Profit 520,000 Marketing 130,000 General & Administrative 150,000 Depreciation 40,000 EBIT 200,000 Interest 45,000 Earnings Before Taxes 155,000 Income Taxes 62.000 Net Income $93,000 $2,350,000 1.240,000 1,110,000 190,000 150,000 65,000 705,000 25,000 610,000 244,000 $366,000 What is the free cash flow for the firm (FCFF) for 2018? $195,000 $243,000 $263,000 $304,000 $178,000 What is the free cash flow for the equity holders (FCFE) for 2018? $416,000 $438,000 $296,000 $421,000 $336,000

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