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Problems (p. 503) 12-1 AFN Equation (All $ in one jillion billion millions) Baxter telly Productss sales be pass judgment to increase by 20% from $5 million in 2010 to $6 million in 2011. Its assets totaled sales growth lay out20% $3 million at the end of 2010. Baxter is already at full capacity, so its assets moldiness grow at the same rate as project sales. At the S0$5 end of 2010, current liabilities were $1 million, consisting of $250,000 of accounts payable, $500,000 of notes payable, and A0*/ S060.000%($3/$5) $250,000 of accruals. The after- tax profit margin is forecasted to be 5%, and the forecasted payout ratio is 70%. Use the AFN L0*/ S010.000%($0.5/$5) equation to forecast Baxters redundant funds needed for the coming year.Profit margin (M)5.000% AFN = (A0*/S0)?S ?(L0*/S0)?S ?M(S1)(1?POR)Payout ratio70.000% Brigham Chp 12 fauna kit ? gross revenue enhancement$1.00 Problems (pp. 549-550)S1$6.00 13-2 Value of Operations of Constant Growth FirmAFN $0.41 EMC confederation has never paid a dividend. Its current issue money run away of $400,000 is expected to grow at a changeless rate of 5%. The heavy average follow of with child(p) is WACC = 12%. steer EMCs value of operations [FCF * (1+g)] / [ WACC - g] = $400,000*1.5%/12%-5%= $6,000,000 Brigham Chp 13 Tool kit 13-3 Horizon Value accredited 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 2012? Actual intercommunicate .2010 2011..2012..2013 Free cash flow $606.82 667.50 707.55 750.00 (millions of dollars) HV2012 =! ...If you lack to get a full essay, order it on our website: OrderCustomPaper.com

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