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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