The financial statements of Can Cable Fabricators are shown below, with the actual results for 2015 and the projections for 2016. Free cash flow is expected to grow at a 5% rate after 2016. The weighted average cost of capital is 10%.

a. If operating capital as of December 31, 2015 is $502.2 million, what is the free cash flow for December 31, 2016?

b. What is the horizon value as of December 31, 2016?

c. What is the value of operations as of December 31, 2015?

d. What is the total value of the company as of December 31, 2015?

e. What is the price per share for December 31, 2015?

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Income Statements for the Year Ended December 31 (Millions of Dollars Except for Per-Share Data) Projected Actual 2015 2016 Net sales $500.0 $530.0 Costs (except depreciation) 381.6 360.0 37.5 Depreciation Total operating costs 39.8 397.5 421.4 Earnings before interest and taxes 102.5 108.6 Less interest 13.9 16.0 Earnings before taxes 88.6 92.6 Taxes 26.6 27.8 Net income before preferred dividends 62.0 64.8 Preferred dividends 6.0 7.4 Net income available for $ 56.0 $ 57.4 common dividends $ 49.6 $ 38.9 Common dividends Addition to retained earnings $ 18.5 $ 6.4 Number of shares (in millions) 12 12 $ 4.13 $ 3.24 Dividends per share Balance Sheets for December 31 (Millions of Dollars) Actual Projected 2015 2016 Assets Cash $ 5.3 $ 5.6 Marketable securities 49.9 51.9 Accounts receivable 53.0 56.2 Inventories 106.0 112.4 Total current assets 214.2 226.1 Net plant and equipment 375.0 397.5 Total assets $589.2 $623.6 Liabilities and Equity $ 9.6 Accounts payable Notes payable $ 11.2 69.9 74.1 Accruals 27.5 28.1 Total current liabilities 107.0 113.4 Long-term bonds 140.8 148.2 Preferred stock 35.0 37.1 Common stock 160.0 160.0 Retained earnings 146.4 164.9 Common equity Total liabilities and equity 306.4 324.9 $589.2 $623.6