Week 7 Project

Week 7 Project
(13-10) Corpo come in Valuation
The financial statements of Lioi Steel Fabricators argon shown belowâ€"both the actual results for 2010 and the projections for 2011. light cash endure is expected to grow at a 6% rate after 2011. The weighted average cost of capital is 11%.
a.If operational capital as of 12/31/2010 is $502.2 million, what is the go off cash flow for 12/31/2011?
Computation of the Free Cash Flow
NOWC= ($5.60 + $56.20 + $112.40)
NOWC = $174.20
Net Plant and Equipment= ($11.20 + $28.10)
Net Plant and Equipment= $39.30
operate great= $174.20 - $39.30
Operating Capital= $134.90
Total Operating Capital=$134.90 + 397.50
Total Operating Capital=$532.40
Change in operating Capital= $532.40 - $502.20
Change in operating Capital= $30.20
FCF= $65.16 - $30.20
FCF=$34.96

b.What is the position treasure as of 12/31/2011?
Horizon value = 37.06/ (.11-.06)
Horizon value = $741.15

c.What is the value of trading operations as of 12/31/2010?




value of operations in 2010= $34.96 + $741.15
Value of operations in 2010= $776.11
Value of operations in 2009=$741.15-$41.95
Value of operations in 2009=$699.20

d.What is the total value of the company as of 12/31/2010?
Total Value of the Company= $699.20+$49.90
Total Value of the Company= $749.10

e.What is the intrinsic price per packet for 12/31/2010?
Value of Equity= $749.10-($69.90+$140.80)-$35.00
Value of Equity= $503.40
Price per share= $503.40/10
Price per share= $50.34If you want to get a unspoilt essay, order it on our website: Orderessay



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