An analyst develops the following pro forma at the end of 2009 for a firm that uses

Question:

An analyst develops the following pro forma at the end of 2009 for a firm that uses a 9 percent hurdle rate for its operations (in millions);

a. Forecast the cum-dividend operating income growth rate for 2011.
b. Using the two-stage growth model 14.7, value the equity with a long-term growth rate of 4 percent.
c. What is the forward enterprise price/earnings ratio implied by thevaluation?

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Financial statements

ISBN: 978-007802531

5th Edition

Authors: Stephen Barrad

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Question Posted: Mar 17, 2012 06:39 AM

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An analyst develops the following pro forma at the end of 2009 for a firm that uses

Question:

2009A 2010E 2011E $ 782 868 $6,400 ,848 7,190 Operating income Net operating assets Net financial obligations Common equity 756 5,644

Step by Step Answer:

a Free cash flow for 2010 OI NOA 782 6848 6400 334 Rein...View the full answer

Financial statements

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