Question: Use the financial statements from Garnet Inc. in problem 1. The 2012 financials are actuals, while 2013 shows projected financials. Garnet's WACC is 10%, and

Use the financial statements from Garnet Inc. in problem 1. The 2012 financials are actuals, while 2013 shows projected financials. Garnet's WACC is 10%, and the company's free cash flows are expected to grow at 4% after 2013.
a. What is the company's horizon value as of December 31, 2013?
b. What is the company's value of operations as of December 31, 2012?
c. What is the total value of Garnet as of December 31, 2012? d.If Garnet has 18 million shares outstanding, what is the share price for December 31, 2012?

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a b c d You first need to calculate the free cash flow which was done in problem 231 ... View full answer

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