7/27/2019 Fin 515 Final Proj
1/5
(13-10)
Corporate Valuation
The financial statements of Lioi Steel Fabricators are shown
belowboth the actual results for 2010 an
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 12/31/2011?
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 intrinsic price per share for 12/31/2010?
The financial statements of Lioi Steel Fabricators are shown
belowboth the actual results for 2010 an
a. If operating capital as of 12/31/2010 is $502.2 million, what
is the free cash flow for 12/31/2011?
Free Cash Flows FCF Acutal 2010 Projected 2011
Net Operating working capital 127.20 134.90
Net Plant & Equipment 375.00 397.50
Net Operating Capital (12/31/12) 502.20 532.40
Investment in Operating Cap. 30.20
NOPAT EBIT*(1-tx rate) 61.50 65.16
Less: Investment in Operating. Capital 30.20
Free Cash Flows FCF = 34.96
b. What is the horizon value as of 12/31/2011?
Horizon Value HVt = [FCFt x (1+g)] / (WACC-g)
=[ 34.96 x (1+.06)] / (11-6)
Horizon Value 741.152
c. What is the value of operations as of 12/31/2010?
PV (HVt @WACC + NPVFCF@WACC)
PV HVt @WACC 667.70+ NPV FCF@WACC 31.50
Value of Operations as on 12/31/11 = 699.20
d. What is the total value of the company as of 12/31/2010?
Vop t + V non operating Assets
#NAME?
Total Company Value as on 12/31/11 7 = 49.10
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