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Corporate Valuation based on MVA

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I need help with problems in Ch. 15-2, 15-4 & 15-6 with are attached.

Also, I would like a solution for the attached year 2000 Stern Stewart Performance 1000 which asks the following questions

1. According to Stern Stewart, which U.S. companies are ranked in the top ten for adding the most market, based on MVA?

2. According to Stern Stewart, which U.S. companies are ranked in the bottom ten for the lowest MVA?

3. What relationship do you see between the spread (i.e., ROIC-WACC)?

In support of the questions, I have attached some lecture material and a powerpoint presentation. All solutions must be in Excel.

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I need help with problems in Ch. 15-2, 15-4 & 15-6 with are attached.

Also, I would like a solution for the attached year 2000 Stern Stewart Performance 1000 which ...

Solution Summary

This discusses the top ten companies based on Corporate Valuation- MVA basis

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Chapter 13: Corporate Valuation, Value-Based Management and Corporate Governance

I am stumped and need some help. I would like you to do the entire problem but PLEASE show all your work so I can understand what is necessary to learn to do this. The word doc is the problem and the Excel doc is the template I would like it finished in.

Start with the partial model in the file Ch13 P11 Build a Model.xls on the textbook's Web site. The Henley Corporation is a privately held company specializing in lawn care products and services. The most recent financial statements are shown below. Income Statement for the Year Ending December 31 (Millions of Dollars Except for Per Share
Data)

a. Forecast the parts of the income statement and balance sheet that are necessary for calculating free cash flow.
b. Calculate free cash flow for each projected year. Also calculate the growth rates of free cash flow each year to ensure that there is constant growth (that is, the same as the constant growth rate in sales) by the end of the forecast period.
c. Calculate operating profitability (OP = NOPAT/Sales), capital requirements (CR = Operating capital/Sales), and expected return on invested capital (EROIC = Expected NOPAT/Operating capital at beginning of year). Based on the spread between EROIC and WACC, do you think that the company will have a positive Market Value Added (MVA = Market value of company ? Book value of company = Value of operations ? Operating capital)?
d. Calculate the value of operations and MVA. (Hint: First calculate the horizon value at the end of the forecast period, which is equal to the value of operations at the end of the forecast period.) Assume that the annual growth rate beyond the horizon is 6%.
e. Calculate the price per share of common equity as of 12/31/2010.

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