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Exercise 4 (Discounted Cash Flow Valuation) Please find attached the balance sheet and income statement for SamDee Inc. In addition to these financial statements,

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Exercise 4 (Discounted Cash Flow Valuation) Please find attached the balance sheet and income statement for SamDee Inc. In addition to these financial statements, you are given the following information: The cost of equity is 12% The cost of debt is 9% (on a pre-tax basis) Weight of equity in the capital structure: 70.02% Weight of debt in the capital structure: 29.98% Please answer the following questions: (a) What is SamDee's NOPAT in 2009? (b) 1%at is SamDee's total operating capital in 2009? In 2008? (c) What is SamDee's investment in operating capital in 2009? (d) Wiat is SamDee's free cash flow (to the firm) in 2009? (e) Assuming that this cash flow will grow at a constant rate of 5% forever, what is SamDee's total enterprise value as of Jan 1, 2010? (f) What is SamDee's firm value? (g) Texmat is SamDee's equity value per share, if there are 10 million shares outstanding?

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