The financial statements of Lioi Steel Fabricators are shown below, both the actual results for 2010 and the projections for 2011. Free cash flow is expected to grow at a 6% rate after 2011. The...

1 answer below »
The financial statements of Lioi Steel Fabricators are shown below, both the actual results for 2010 and the projections for 2011. Free cash flow is expected to grow at a 6% rate after 2011. The weighted average cost of capital is 11%.

a. If operating 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?v Income Statements for the Year Ending December 31 (Millions of Dollars Except for Per Share Data)








Balance Sheets for December 31 (Millions of Dollars)







Answered Same DayDec 24, 2021

Answer To: The financial statements of Lioi Steel Fabricators are shown below, both the actual results for 2010...

David answered on Dec 24 2021
126 Votes
Answer:

a. NOWC= ($5.60 + $56.20 + $112.40)
NOWC = $174.20

Net Plant and Equipment= ($11.20 + $28.10)
Net Plant and Equipment= $39.30

Operating Capital= $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...
SOLUTION.PDF
SOLUTION.PDF

Answer To This Question Is Available To Download

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here
Have files?