Project 2

Project 2 Week 7
Complete the Problem 13-10 somatic Valuation on pages 551-552 in a Word schedule named FI515_W7_Project_yourname. Show the details of your calculation/work in your practice to the Problem.
Project Two
(13-10)
Corporate Valuation
The financial statements of Lioi Steel Fabricators are shown underâ€"both the actual results for 2010 and the projections for 2011. Free property flow is expect to grow at a 6% rate after 2011. The weighted average cost of capital is 11%.
* a. If run capital as of 12/31/2010 is $502.2 million, what is the free cash flow for 12/31/2011?
* b. What is the horizon value as of 12/31/2011?
* c. What is the value of operations as of 12/31/2010?
* d. What is the total value of the company as of 12/31/2010?
* e. What is the intrinsic price per share for 12/31/2010?
Income Statements for the Year Ending December 31 (Millions of Dollars Except for Per office Data)

Actual 2010| project 2011|
 |
Net sales| $ 500.0| $ 530.0|
Costs (except depreciation)| 360.0| 381.6|
dispraise|     37.5|     39.8|
   Total operating costs| $ 397.5| $ 421.4|
Earnings in the beginning invade and taxes| $ 102.5| $ 108.6|
   Less interest|     13.9|     16.0|
Earnings before taxes| $   88.6| $   92.6|
   Taxes (40%)|      35.4|      37.



0|
Net income before preferred dividends| $   53.2| $   55.6|
   Preferred dividends|       6.0|       7.4|
Net income available for common dividends| $   47.2| $   48.2|
commonalty dividends| $   40.8| $   29.7|
Addition to retained earnings| $     6.4| $   18.5|
Number of shares| 10| 10|
Dividends per share| $   4.08| $   2.97|
Balance Sheets for December 31 (Millions of Dollars)
 | Actual 2010| Projected 2011|
 |
Assets|  |  | | |
Cash| $     5.3| $     5.6| | |
Marketable securities| 49.9| 51.9| | |
Accounts receivable| 53.0| 56.2| | |
Inventories|    106.0|    112.4| | |...If you want to get a full essay, order it on our website: Orderessay



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