(13-10) Corporate Valuation The financial statements of Lioi Steel Fabricators are shown below—both 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% Income Statements for the Year Ending December 31 (Millions of Dollars Except for Per Share Data) Actual 2010 Projected 2011 500.00 $ 530.00 360.00 381.60 37.50 39.80 397.50 $ 421.40 102.50 $ 108.60 13.90 16.00 88.60 $ 92.60 $35.44 53.16
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FIN515 Week 5 Project Equipment’s Basic Cost 70,000 To Modify it to Firm 15,000 The Spectrometer (MARC 3 year Class Would be sold after 3yrs 30,000 Equipment’s requires increase in net working capital 4,000 The Spectrometer no effect on Revenue But expected to save 25,000 per year before-tax operating cost Federal plus state tax rate 40% A. What is the net cost of the spectrometer- Price – 70,000+ 15,000 + 4,000 Net Cost – (89,000) B. What are the net operating cash
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FIN515 Homework Week # 3 Brian Jack D01609334 Managerial Finance briancjack@hotmail.com 03-23-2014 Professor: Paul Tovbin Chapter 5 29. Suppose the term structure of risk-free interest rates is as shown below: Top of Form |Term |1 year | |Treasury |3.1
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