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d. Calculate the value of operations and MVA. (Hint: first calculate the horizon value at the end of the forecast period, which is equal to

d. Calculate the value of operations and MVA. (Hint: first calculate the horizon value at the end of the forecast period, which is equal to the value of operations at the end of the forecast period. Assume that the annual growth rate beyond the horizon is 6 percent.)
Actual Projected Projected Projected Projected
2012 2013 2014 2015 2016
Free cash flow (5.6) 33.4 71.8 76.1
Long-term constant growth in FCF 6.0%
Weighted average cost of capital (WACC) 10.5% 10.5% 10.5% 10.5% 10.5%
Horizon value 1,793.6
FCF in Years 1-3 and FCF4 + horizon value in Year 4 (5.6) 33.4 71.8 76.1
Value of operations (PV of FCF + HV)
Operating capital
Market value added (MVA=Market value of company - book value of company = Value of operations - Operating capital)
e. Calculate the price per share of common equity as of 12/31/2012.
Actual
2012
Value of Operations
Plus Value of Mkt. Sec.
Total Value of Company
Less Value of Debt
Less Value of Pref.
Value of Common Equity
Divided by number of shares
Price per share

I am looking for the formulas not the answer to calculate in the yellow boxes?

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