Use the following information to answerquestions 1-7

Consider the following abbreviated financial statements forBoathead 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 has1,000 shares outstanding. Free Cash Flow to the Firm will grow at2% and the Free Cash Flow to Equity will grow at 7% forever. Theweighted average cost of capital is 12%. The cost of equity is 20%.Construct the income statement. Then answer the following 7questions.

.

1.  What is the change in net working capital for2015? $______

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)? $______

5.  What is the stock price per share using thediscounted FCFF valuation? $______

6.  What is the Free Cash Flow to Equity for 2015?$______

7. What is the stock price per share using the discounted FCFEvaluation? $______

Please show work. Please make answers match the answerkey. Here's the answer key:

1. 43

2. 1743

3. 2821

4. 2821

5. 25.61 or 26.01

6. 2799

7. 21.53