Question: EXPLAIN THE WHOLE ANSWER IN WORDS STEP BY STEP, ESPECIALLY THE LAST IMAGE WHERE THERE IS ASKED HOW?? EXPLAIN THE WHOLE IMAGE THROUGH PROPER FINANCIAL

EXPLAIN THE WHOLE ANSWER IN WORDS STEP BY STEP, ESPECIALLY THE LAST IMAGE WHERE THERE IS ASKED HOW?? EXPLAIN THE WHOLE IMAGE THROUGH PROPER FINANCIAL ACCOUNTING TERMS AND GIVE REASONS

( 15-2 ) MagnaVision Inc.: Balance Sheets (Millions of Dollars) Toble 15-3 Calculating MagnaVisions Expected Free Cash Flow (Millions of Dollars) Calculating the Value of Operations Based on a 10.84% cost of capital, ( $ 49 ) million of free cash flow in 2011, and a ( begin{array}{llllll}12 / 31 / 07 & 12 / 31 / 08 & 12 / 31 / 09 & 12 / 31 / 10 & 12 / 31 / 11 & 12 / 31 / 12end{array} )

Table 15-2 Assets Cash MagnaVision Inc.: Balance Sheets (Millions of Dollars) Marketable securities Accounts receivable Inventories Total current assets Net plant and equipment Total assets Liabilities and Equity Accounts payable Notes payable Accruals Total current liabilities Long-term bonds Preferred stock Common stockb Retained earnings Common equity Total liabilities and equity Actual 2007 $ 17.0 63.0 85.0 170.0 $335.0 279.0 $614.0 $ 17.0 123.0 43.0 $183.0 124.0 62.0 200.0 45.0 $245.0 $614.0 2008 $ 20.0 70.0 100.0 200.0 $390.0 310.0 $700.0 $ 20.0 140.0 50.0 $210.0 140.0 70.0 200.0 80.0 $280.0 $700.0 2009 $ 22.0 80.0 110.0 220.0 $432.0 341.0 $773.0 $ 22.0 160.0 55.0 $237.0 160.0 80.0 200.0 96.0 $296.0 $773.0 Projected 2010 $ 23.0 84.0 116.0 231.0 $454.0 358.0 $812.0 $ 23.0 168.0 58.0 $249.0 168.0 84.0 200.0 111.0 $311.0 $812.0 2011 $ 24.0 88.0 121.0 243.0 $476.0 376.0 $852.0 $ 24.0 176.0 61.0 $261.0 176.0 88.0 200.0 127.0 $327.0 $852.0

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