The financial statements of Lioi Steel Fabricators are shown belowboth 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 $ 500.0 $ 530.0 Costs (except depreciation) 360.0 381.6 Depreciation 37.5 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 Taxes (40%) 35.4 37.0 Net income before preferred dividends $ 53.2 $ 55.6 Preferred dividends 6.0 7.4 Net income available for common dividends $ 47.2 $ 48.2 Common dividends $ 40.8 $ 29.7 Addition to retained earnings $ 6.4 $ 18.5 Number of shares 10 10 Dividends per share $ 4.08 $ 2.97 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 106.0 112.4 Total current assets $ 214.2 $ 226.1 Net plant and equipment 375.0 397.5 Total assets $ 589.2 $ 623.6 Liabilities and Equity Accounts payable $ 9.6 $ 11.2 Notes payable 69.9 74.1 Accruals 27.5 28.1 Total current liabilities $ 107.0 $ 113.4 Long-term bonds 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