Question #3: Determining Corporate Value, FCF and Intrinsic Share Price Estimate the free cash flows from 2018 through 2022. Estimate the firm value at the end of 2017 assuming constant 4% growth per year after 2022. Assume WACC is 10%. Assuming there are 60 million shares outstanding, what is the price per share?

•broussard skateboard’s sales are expected to increase by 15% from $8 million in 2016 to $9.2 million in 2017. its assets totaled $5 million at the end of 2016. broussard is already at full capacity, so its assets must grow at the same rate as projected sales. at the end of 2016, current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. the after-tax profit margin is forecasted to be 6%, and the forecasted payout ratio is 40%. use the afn equation to forecast broussard’s additional funds needed for the coming year