Calculate the per-share value at the end of fiscal year

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Question: Forecasting and Valuation for General Mills, Inc. (Easy) The following are from the financial statements for General Mills (in millions):

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At the end of fiscal year 2010, 656.5 million shares were outstanding, and they traded at $60 each. The following forecasts were prepared:

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Prepare a proforma for the years 2011- 2014 with a forecast that core profit margins and asset turnovers will be the same as in 2010. Then calculate the per-share value at the end of fiscal year 2010 with the forecast that residual operating income will grow after 2014 at the sales growth rate. Use a required return for operations of 8 percent.

Reference no: EM131491198

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