Styles 4) The financial statements of Ligi Steel Fabricators are shown below-both the actual results for 2010 and the projections for 2011. Free cash flow is expected to grow at a 6% rate after 2011. The weighted average cost of capital is 11%. a) If operating capital as of 12/31/2010 is $502.2 million, what is the free cash flow for 12/31/2011? b) What is the horizon value as of 12/31/2011? c) What is the value of operations as of 12/31/2010? d) What is the total value of the company as of 12/31/2010? e) What is the intrinsic price per share for 12/31/2010? Income Statements for the Year Ending December 31 (Millions of Dollars Except for Per Share Data) Actual 2010 Projected 2011 Net sales Costs (except depreciation) $ 500.0 $ 530.0 Depreciation 360.0 37.5 381.6 39.8 Total operating costs $ 397.5 $ 421.4 Earnings before interest and taxes $ 102.5 $ 108.6 Less interest 13.9 16.0 Earnings before taxes $ 88.6 $ 92.6 35.4 37.0 Taxes (40%) Net income before preferred dividends $ 53.2 $55.6 6.0 7.4 Preferred dividends Net income available for common dividends $47.2 $ 48.2 $ 40.8 $ 29.7 Common dividends $6.4 $ 18.5 Addition to retained earnings 10 10 Number of shares $4.08 $ 2.97 Dividends per share Infinix ZER] Ed Focus 22C Balance Sheets for December 31 (Millions of Dollars Actual 2010 Projected 2011 Assets Cash $5.3 $ 5.6 Marketable securities 49.9 51.9 Accounts receivable 53.0 56.2 Inventories Total current assets 106.0 112.4 $214.2 $226.1 Net plant and equipment 375.0 397.5 $ 589.2 $ 623.6 Total assets Liabilities and Equity Accounts payable $5.6 $ 11.2 Notes payable Accruals Total current liabilities Long-term bonds 69.9 74.1 27.5 28.1 $ 107.0 $113.4 140.8 148.2 Preferred stock 35.0 37.1 Common stock (par plus PIC) 160.0 160.0 Retained earnings 146.4 164.9 Common equity $ 306.4 $324.9 Total liabilities and equity $ 589.2 $ 623.6