FIN 534 RANK Imagine Your Future /fin534rank.com FIN 534 RANK Imagine Your Future /fin534rank.com - Page 131

Last year’s sales = S0 $300.0 Last year’s accounts payable $50.0 Sales growth rate = g 40% Last year’s notes payable $15.0 Last year’s total assets = A0* $500.0 Last year’s accruals $20.0 Last year’s profit margin = PM 20.0% Initial payout ratio 10.0% a. $31.9 b. $33.6 c. $35.3 d. $37.0 e. $38.9 =============================================== FIN 534 Week 7 Chapter 13 Solution FOR MORE CLASSES VISIT www.fin534rank.com Suppose Leonard, Nixon, & Shull Corporation’s projected free cash flow for next year is $100,000, and FCF is expected to grow at a constant rate of 6%. If the company’s weighted average cost of capital is 11%, what is the value of its operations?