Weighted average cost of capital basics

Reference no: EM13154658

The financial statements of Lioi Steel Fabricators are shown below the actual results for 2010 and the projections for 2011. Free cash flow is expected to grow at a 6% rate after 2011. The weighted average cost of capital is 11%.

a. If operating capital as of 12/31/2010 is $502.2 million, what is the free cash flow for 12/31/2011?

b. What is the horizon value as of 12/31/2010?

c. What is the value of operations as of 12/31/2010?

d. What is the intrinsic price per share for 12/31/2010?

Reference no: EM13154658

Questions Cloud

Compute molar mass of ethanol after calculated molar mass : Compute molar mass of ethanol after calculated molar mass in an experiment and the given molar mass of ethanol is 46.07g

Criterion for rejection or non-rejection of null hypothesis : Formulate the null and alternative hypotheses. Determine the criterion for rejection or non-rejection of the null hypothesis.

What happened to real output : what happened to real output? by how much would the price index have had to rise for real income to remain constant?

Present value of the minimum lease payments : On January 1, 2009, Princess Corporation leased equipment to King Company. The lease term is 8 years. The first payment of $675,000 was made on January 1, 2009. The equipment cost Princess Corporation $3,600,000. The present value of the minimum l..

Weighted average cost of capital basics : The financial statements of Lioi Steel Fabricators are shown below the actual results for 2010 and the projections for 2011. Free cash flow is expected to grow at a 6% rate after 2011. The weighted average cost of capital is 11%.

What mass of nahco3 would be required : A 2.5L bottle of concentrated sulfuric acid H2SO4 (16M) falls and breaks on the floor. What mass of NaHCO3 would be required to neutralize this acid spill through the following reaction HCO3 + H => H2O +CO2

Credit cards increase the demand for money : The introduction of a stylish line of Toyotas makes some consumers prefer foreign cars over domestic cars. d. The central bank doubles the money supply. e. New regulations restricting the use of credit cards increase the demand for money.

Computing expected new net income : As a result, they estimate that gross profit will increase by $43,208 and operating expenses by $71,922. Compute the expected new net income.

Explain how the following events would affect the demand : Explain how the following events would affect the demand for labor. A new education program administered by the company increases labor's marginal product.

User Account

All Pages