1. Globo-Chem Co. is expected to generate a free cash flow (FCF) of $9,850 million this year (FCF1=$9,850 million), and the FCF is expeted to grow at a rate of 22.6% over the following two years (FCF2 and FCF3). After the third year, however, the FCF is expected to grow at a constant rate of 3.18% per year, which will last forever (FCF4). If Globo-Chem Co.'s weighted average cost of capital (WACC) is 9.54%, what is the current total firm value?

a) $213,062.18 million

b) $30,320.57 million

c) $255,674.62 million

d) $270,510.98 million

2. Globo-Chem Co.'s debt has a market value of $159,797 million, and Globo-Chem Co. has no preferred stock. If Globo-Chem Co. has 150 million shares of common stock outstanding, what is Globo-Chem Co.'s estimated intrinsic value per share of common stock?

a) $354.10

b) $390.61

c) $1065.31

d) $355.10