Use the following information to answer question
Consider the following abbreviated financial statements for Boathead Enterprises:
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BOATHEAD ENTERPRISES
2014 and 2015 Partial Balance Sheets
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Assets
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Liabilities and Owners' Equity
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2014
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2015
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2014
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2015
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Current assets
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$
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946
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$
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1,008
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Current liabilities
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$
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385
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$
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404
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Net fixed assets
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3,907
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4,600
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Long-term debt
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2,029
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2,197
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Equity
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2,439
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3,007
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BOATHEAD ENTERPRISES
2015 Select IncomeStatement Info
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Sales
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$
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12,340
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Costs
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5,920
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Depreciation
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1,050
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Interest paid
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190
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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.
What is the stock price per share using the discounted FCFF valuation?