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Shady Sunglasses Operates Retail Sunglass Kiosks in Shopping Malls Using the Above Information and Assuming That Steady-State Growth in Is

Question 57

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Shady Sunglasses operates retail sunglass kiosks in shopping malls. Below is information related to the company:
(dolar aniounts int thousaids)Net Cash Flow from OperationsInterest Expense after taxDecrease (Increase) in Cash Required for Operations Net Cash Flow from InvestingNet Cashfrom Debt FinancingPresent Value Factors (R0=8.5%)Common Shares Outstandingin thousands 2012 564122752872100.9221,5122013628134543002040.8492014854148483101400.7832015105914532285850.7222016134515561294400.665 201716551484827746\begin{array}{c}\begin{array}{l}\text {(dolar aniounts int thousaids)}\\\text {Net Cash Flow from Operations}\\\text {Interest Expense after tax}\\\text {Decrease (Increase) in Cash Required }\\\text {for Operations Net Cash Flow from Investing}\\\text {Net Cashfrom Debt Financing}\\\\\text {Present Value Factors \( \left(R_{0}=8.5 \%\right) \)}\\\text {Common Shares Outstanding}\\\text {in thousands}\end{array}\begin{array}{l}\underline{\text { 2012 }}\\564 \\122 \\-75 \\-287 \\210 \\\\0.922 \\1,512\\\\ \end{array}\begin{array}{l}\underline{2013}\\628 \\134 \\-54 \\-300 \\204 \\\\0.849\\\\\\ \end{array}\begin{array}{l}\underline{2014}\\854\\148 \\-48 \\-310 \\140 \\\\0.783\\\\\\ \end{array}\begin{array}{l}\underline{2015}\\1059 \\145 \\-32 \\-285 \\85 \\\\0.722\\\\\\ \end{array}\begin{array}{l}\underline{2016}\\1345 \\155 \\-61 \\-294 \\-40\\\\0.665\\\\ \\\end{array}\begin{array}{l}\underline{\text { 2017} } \\1655 \\148 \\-48 \\-277 \\-46\\\\\\\\\\ \end{array}\end{array}
Using the above information and assuming that steady-state growth in year 2017 and beyond will be 4% calculate Shady Sunglasses' current value per share.

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