# fm15 4 - 55 707 \$ − = \$15,000 15-4 10 09 05 10 000 000...

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Answers and Solutions: 15 - 4 SOLUTIONS TO END-OF-CHAPTER PROBLEMS 15-1 NOPAT = EBIT(1 - T) = 100(1 - 0.4) = \$60. Net operating WC 07 = (\$27 + \$80 + \$106) - (\$52 + \$28) = \$213 - \$80 = \$133. Operating capital 07 = \$133 + \$265 = \$398. Net operating WC 08 = (\$28 + \$84 + \$112) - (\$56 + \$28) = \$224 - \$84 = \$140. Operating capital 08 = \$140 + \$281 = \$421. FCF = NOPAT - Net investment in operating capital = \$100(0.6) - (\$421 - \$398) = \$37.0. 15-2 Value of operations = V op = PV of expected future free cash flow V op = g WACC ) g 1 ( FCF + = 05 . 0 12 . 0 ) 05 . 1 ( 000 , 400 \$ = \$6,000,000. 15-3 The growth rate in FCF from 2009 to 2010 is g=(\$750.00-\$707.55)/\$707.50 = 0.06. V Op at 2009 = 06 . 0 11 . 0 ) 06 . 1 (
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Unformatted text preview: 55 . 707 \$ − = \$15,000. 15-4 ] 10 . 09 . [ 05 . 10 . 000 , 000 , 200 \$ 000 , 000 , 200 \$ op V − ⎥ ⎦ ⎤ ⎢ ⎣ ⎡ − + = =\$200,000,000 + (-\$40,000,000)= \$160,000,000. MVA = \$160,000,000 - \$200,000,000 = -40,000,000. 15-5 Capital 2011 = Sales 2011 (0.43)= \$129,000,000. V op at 2011 ⎥ ⎦ ⎤ ⎢ ⎣ ⎡ ⎟ ⎠ ⎞ ⎜ ⎝ ⎛ + − ⎥ ⎦ ⎤ ⎢ ⎣ ⎡ − + + = 05 . 1 43 . ) 098 . ( 06 . 05 . 098 . ) 05 . 1 ( 000 , 000 , 300 \$ 000 , 000 , 129 \$ [ ][ ] . 000 , 375 , 259 \$ 000 , 375 , 130 \$ 000 , 000 , 129 \$ 67 0.01986666 000 , 500 , 562 , 6 \$ 000 , 000 , 129 \$ = + = + =...
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## This note was uploaded on 07/13/2011 for the course FIN 4414 taught by Professor Staff during the Spring '08 term at University of Florida.

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