fm15 6 - c. V Op at 12/31/2007 = [$34.96 +...

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Answers and Solutions: 15 - 6 15-10 a. NOPAT 2008 = $108.6(1-0.4) = $65.16 NOWC 2008 = ($5.6 + $56.2 + $112.4) – ($11.2 + $28.1) = $134.9 million. Capital 2008 = $134.9 + $397.5 = $532.4 million. FCF 2008 = NOPAT – Investment in Capital = $65.16 – ($532.4 - $502.2) = $65.16 - $30.2 = $34.96 million. b. HV 2008 = [$34.96(1.06)]/(0.11-0.06) = $741.152 million.
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Unformatted text preview: c. V Op at 12/31/2007 = [$34.96 + $741.152]/(1+0.11) = $699.20 million. d. Total corporate value = $699.20 + $49.9 = $749.10 million. e. Value of equity = $749.10 ($69.9 + $140.8) - $35.0 = $503.4 million. Price per share = $503.4 / 10 = $50.34....
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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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