Question

Shady Sunglasses operates retail sunglass kiosks in shopping malls. Below is information related to the company:...

Shady Sunglasses operates retail sunglass kiosks in shopping malls. Below is information related to the
company:

(dollar amounts in thousands) 2012 2013 2014 2015 2016 2017
Net Cash Flow from Operations 564 628 854 1059 1345 1655
Interest Expense after tax 122 134 148 145 155 148
Decrease (Increase) in Cash
Required for Operations
-75 -54 -48 -32 -61 -48
Net Cash Flow from Investing -287 -300 -310 -285 -294 -277
Net Cash from Debt Financing 210 204 140 85 -40 -46

Present Value Factors (Re =
8.5%)
0.922 0.849 0.783 0.722 0.665
Common Shares Outstanding
in thousands
1,512

Required:
1. 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 using the discounted free cash flow valuation model.

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