Determine the value of operations

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Heath Inc. balance sheet shows that it has $10 million short-term investments, $15 million in notes payable, $60 million in long-term bonds, and $15 million in preferred stock. Heath has 60 million of shares outstanding. (Beta = 1.10 , Expected return = 11.60%, portfolio weight 30%, Expected FCF=200 million, growth rate = 7%, cost of capital = 12%)

Calculate the following:

-Value of operations

-total intrinsic value for Heath Inc.

-intrinsic value of equity for Heath Inc.

-intrinsic stock price per share for Heath Inc

Reference no: EM133115174

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