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12-1 Baxter Video Productss sales are expect to extend by 20% from $5 million in 2010 to $6 million in 2011. Its assets totaled $3 million at the end of 2010. Baxter is already at full capacity, so its assets moldiness grow at the same rate as commune sales. At the end of 2010, current liabilities were $1 million, consisting of $250,000 of accounts payable, $500,000 of notes payable, and $250,000 of accruals. The afterwards- tax coif on margin is forecasted to be 5%, and the forecasted payout ratio is 70%. apply the AFN equation to forecast Baxters additional money indispensable for the coming year 13-2 EMC Corporation has never salaried a dividend. Its current free bullion flow of $400,000 is expected to grow at a constant rate of 5%. The weighted modal(a) cost of capital is WACC = 12%. Calculate EMCs grade of operations. 13-3 Current and projected free cash flows for Radell world-wide trading 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) jimmy at 2012? Actual 2010 Free cash flow$606.82 (millions of dollars) 2011 $667.50 Projected 20122013 $707.55$750.00 13-4 A caller-up has capital of $cc 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: expend Equation 13-5.)If you inadequacy to get a full essay, recite it on our website: OrderEssay.net

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