ModelHW10 - 11-4 a. Vop 3 b. N = $40 (1.07) = $713.33. 0.13...

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Unformatted text preview: 11-4 a. Vop 3 b. N = $40 (1.07) = $713.33. 0.13 − 0.07 0 WACC = 13% | | 1 | -20 ($ 17.70) 23.49 522.10 $527.89 2 3 g = 7% | 30 | 4 | ••• 40 Vop 3 = 713.33 753.33 c. Total valuet=0 = $527.89 + $10.0 = $537.89. Value of common equity = $537.89 - $100 = $437.89. $437.89 Price per share = = $43.79. 10.0 11-10 a. NOPAT2004 = $108.6(1-0.4) = $65.16 NOWC2004 = ($5.6 + $56.2 + $112.4) – ($11.2 + $28.1) = $134.9 million. Capital2004 = $134.9 + $397.5 = $532.4 million. FCF2004 = NOPAT – Investment in Capital = $65.16 – ($532.4 $502.2) = $65.16 - $30.2 = $34.96 million. b. HV2004 = [$34.96(1.06)]/(0.11-0.06) = $741.152 million. c. VOp at 12/31/2003 = [$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 08/30/2011 for the course FIN 101 taught by Professor Ands during the Spring '11 term at Bloomsburg.

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