You are valuing Stedman Inc., a chemical firm in stable growth

(growing 3 percent a year) that is expected to generate $100 million in after-tax operating income next year. You have estimated the following:

The return on invested capital on new investments is normally distributed, with an expected value of 15%, with a standard deviation of 3%.

The cost of capital for the firm is 10%, uniformly distributed, with a minimum value of 8% and a maximum value of 12%.

The firm has $500 million in debt outstanding and a cash balance of

$200 million. Develop a distribution of simulated values for Stedman Inc.