10. Corporate valuation model Aa Aa The corporate valuation model, the price-to-earnings (P/E) multiple approach, and the economic value-added (EVA) approach are some examples of valuation techniques. The corporate valuation model is similar to the dividend-based valuation that you've done in previous problems, but it focuses on a firm's free cash flows (FCFs) instead of its dividends. Some firms don't pay dividends, or their dividends are difficult to forecast. For that reason, some analysts use the corporate valuation model. Gadget Twin Inc. has an expected net operating profit after taxes, EBIT(1 T), of $13,700 million in the coming year. In addition, the firm is expected to have net capital expenditures of $2,055 million, and net operating working capital (NOWC) is expected to increase by $30 million. How much free cash flow (FCF) is Gadget Twin Inc. expected to generate over the next year? O $11,615 million O $15,725 million O $11,675 million O $470,131 million Gadget Twin Inc.'s FCFs are expected to grow at a constant rate of 2.10% per year in the future. The market value of Gadget Twin Inc.'s outstanding debt is 24,446 million, and preferred stocks' value is $69,137 million. Gadget Twin Inc. has 450 million shares of common stock outstanding, and its weighted average cost of capital (WACC) equals 6.30%. Using the preceding information and the FCF you Value (Millions) Term calculated in the previous question, calculate the Total firm value appropriate values in this table. $553,095.24 Value of common equity $184,365.08 Intrinsic value per share $1,975,348.10 $276,547.62