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# fm15 6 - c V Op at =[\$34.96 \$741.152(1 0.11 = \$699.20...

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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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