H/W Corporate Valuation 1) EMC Corporation has never paid a dividend. Its current free cash flow of $400,000 is expected to grow at a constant rate of 5%. The weighted average cost of capital is WACC = 12%. Calculate EMC's value of operations. 2) Current and projected free cash flows for Radell Global Operations are shown below. Growth is expected to be constant after 2012, and the weighted average cost of capi-tal is 11%. What is the horizon (continuing) value at 20127 Actual 2010 Projected 2012 2011 Free cash flow millions of dollars) 2013 $750.00 $506.82 S667.50 570755 3) A company has capital of $200 million. It has an EROIC of 9%, forecasted constant growth of 5%, and a WACC of 10%. What is its value of operations? What is its intrinsic MVA? (Hint: Use Equation is shown below.) Capital (EROICN - WACC) Vopat time N) = Capitaly + WACC-8 Capital, CRN = Capitaly + WACC-8 OPs+1 - WACC 4) Dozier Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows (FCFS) during the next 3 years, after which FCF is expected to grow at a constant 7% rate. Dozier's weighted average cost of capital is WACC = 13%. 1 Year 2 530 3 $40 Free cash flow (5 millions) a. What is Dozier's terminal, or horizon, value? (Hint: Find the value of all free cash flows beyond Year 3 discounted back to Year 3.) b. What is the current value of operations for Dozier? c. Suppose Dozier has $10 million in marketable securities, $100 million in debt, and 10 million shares of stock. What is the intrinsic price per share