## 2013/02/21

### Project 2

Project 2 Week 7
Complete theÂ 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.Â If run capital as of 12/31/2010 is \$502.2 million, what is the free cash flow for 12/31/2011?
* b.Â What is the horizon value as of 12/31/2011?
* c.Â What is the value of operations as of 12/31/2010?
* d.Â What is the total value of the company as of 12/31/2010?
* e.Â 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|
Â |
Net sales| \$ 500.0| \$ 530.0|
Costs (except depreciation)| 360.0| 381.6|
dispraise| Â Â Â Â 37.5| Â Â Â Â 39.8|
Â Â Â Total operating costs| \$ 397.5| \$ 421.4|
Earnings in the beginning invade and taxes| \$ 102.5| \$ 108.6|
Â Â Â Less interest| Â Â Â Â 13.9| Â Â Â Â 16.0|
Earnings before taxes| \$Â Â  88.6| \$Â Â  92.6|
Â Â Â Taxes (40%)| Â Â Â Â Â 35.4| Â Â Â Â Â 37.

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

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