1 4 5 8 10 Given the cash flows for the printer manufacturing division, calculate PV of near-term cash flows, PV (horizon value), and total value of firm; r = 10% and g = 6% 2 3 6 7 9 Asset value Earnings Net investment Free cash flow (FCF) Return on equity (ROE) Asset growth rate Earnings growth rate 10.00 11.20 12.54 14.05 16.69 18.19 19.29 20.44 21.67 15.31 1.84 2.00 2.45 1.20 1.20 1.34 1.34 0.00 1.51 1.51 1.69 1.26 2.18 1.09 2.31 1.16 2.60 1.30 1.38 1.50 1.23 0.00 1.09 1.16 1.30 0.00 0.12 0.42 0.12 0.46 0.12 0.50 0.12 1.23 0.12 0.12 0.12 0.12 0.12 0.12 0.09 0.06 0.06 0.12 0.12 0.12 0.12 0.12 0.12 0.09 0.09 0.09 0.09 0.06 0.06 0.09 0.06 0.06 1 4 5 8 10 Given the cash flows for the printer manufacturing division, calculate PV of near-term cash flows, PV (horizon value), and total value of firm; r = 10% and g = 6% 2 3 6 7 9 Asset value Earnings Net investment Free cash flow (FCF) Return on equity (ROE) Asset growth rate Earnings growth rate 10.00 11.20 12.54 14.05 16.69 18.19 19.29 20.44 21.67 15.31 1.84 2.00 2.45 1.20 1.20 1.34 1.34 0.00 1.51 1.51 1.69 1.26 2.18 1.09 2.31 1.16 2.60 1.30 1.38 1.50 1.23 0.00 1.09 1.16 1.30 0.00 0.12 0.42 0.12 0.46 0.12 0.50 0.12 1.23 0.12 0.12 0.12 0.12 0.12 0.12 0.09 0.06 0.06 0.12 0.12 0.12 0.12 0.12 0.12 0.09 0.09 0.09 0.09 0.06 0.06 0.09 0.06 0.06