Question: The financial statements of Lioi Steel Fabricators are shown below, with the actual results for 2006 and the projections for 2007. Free cash flow is expected to grow at a 6 percent rate after 2007. The weighted average cost of capital is 11 percent.
a. If operating capital as of 12/31/2006 is $502.2 million, what is the free cash flow for 12/31/2007?
b. What is the horizon value as of 12/31/2007?
c. What is the value of operations as of 12/31/2006?
d. What is the total value of the company as of 12/31/2006?
e. What is the price per share for 12/31/2006?
