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The financial statements of Lioi Steel Fabricators are shown below, with the actual results for 2010 and the projections for 2011. Free cash flow is...

The financial statements of Lioi Steel Fabricators are shown below, with the actual results for 2010 and the projections for 2011. Free cash flow is expected to grow at a 4 percent rate after 2005. The weighted average cost of capital is 12%.
a. If operating capital as of 12/31/2010 is $563.7 million, what is the free cash flow for 12/31/2011?
b. What is the horizon value as of 12/31/2011?
c. What is the value of operations as of 12/31/2010?
d. What is the total value of the company as of 12/31/2010?
e. What is the price per share for 12/31/2010?
Income Statement for the Year Ending December 31
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Finance-8080573.doc

Income Statements for the Year Ending December 31 (Millions of
Dollars Except for Per Share Data)
Actua
l Projecte
d 2010 2011 Net sales $500.
0 $530.0 Costs (except depreciation) 360.0 381.6...

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