Can someone point me where to find how to do this? I've tried the book and web... Suppose today is January 1, 2012. Using the financial statements below prepare budgeted financial statements for 2012, 2013, 2014 & 2015. In 2011 dividend payout ratio was 50.36%. Assume that except tax rate all other items in the financial statements will grow by percentage sales growth. Company's sale revenue is expected to grow at the rate of 7%. Compute free cash flow (FCF) for all the forecasted years. Assume that FCF is forecasted to grow at 4% after 2015 forever. The WACC is 10% and there are 10 million shares outstanding.
a. Calculate the value of operations as of today.
b. What is the intrinsic value of the stock price?
c. Find the additional fund needed (AFN) for 2012. (5 pts) (Note: You must show forecasted financial statement with the solutions)