The financial statements of Lioi Steel Fabricators are shown below-both the actual results for 2012 and the projections for 2013.
Free cash flow is expected to grow at a 6% rate after 2013. The weighted average cost of capital is 11%.
a. If operating capital as of 12/31/2012 is $502.2 million, what is the free cash flow for 12/31/2013?
b. What is the horizon value as of 12/31/2013?
c. What is the value of operations as of 12/31/2012?
d. What is the total value of the company as of 12/31/2012?
e. What is the intrinsic price per share for 12/31/2012?
Income statements for the year Ending December 31
(Millions of Dollars Except for per share Data)

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Actual 2012 Projected 2013 Net sales Costs (except depreciation) Depreciati $500.0 360.0 381.6 Total operating costs Earnings before interest and taxes $102.5 $ 88.6 $ 53.2 $108.6 $ 92.6 s 55.6 Less interest Earnings before taxes Taxes (40%) Net income before preferred dividends Preferred dividends Net income available for common dividends Common dividends Addition to retained earnings Number of shares Dividends per share $ 47.2 $ 40.8 $ 6.4 10.0 $ 4.08 $ 48.2 $ 29.7 18.5 10.0 s 2.97 Balance Sheets for December 31 (Millions of Dollars) Assets Actual 2012 Projected 2013 Marketable securities Accounts receivable Inventories $ 5.3 49.9 53.0 $ 5.6 51.9 56.2 Total current assets Net plant and equipment Total assets $214.2 $226.1 Liabilities and Equity Accounts payable Notes payable Accruals 5 $ 9.6 69.9 0 $ 11.9 74.1 Total current liabilities Long-term bonds Preferred stock Common stock (par plus PIC) Retained eamings $107.0 140.8 35.0 160.0 $113.4 148.9 37.1 160.0 Common equity Total liabilities and equity