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. Sixty Second Avenue Inc. has an expected net operating profit after taxes, EBIT(1 T), of $3,900 million in the coming year. In addition, the firm is expected to have net capital expenditures of $585 million, and net operating working capital (NOWC) is expected to increase by $20 million. How much free cash flow (FCF) is Sixty Second Avenue Inc. expected to generate over the next year? $4,465 million O $3,335 million $99,317 million O $3,295 million Sixty Second Avenue Inc.'s FCFs are expected to grow at a constant rate of 2.82% per year in the future. The market value of Sixty Second Avenue Inc.'s outstanding debt is $26,290 million, and preferred stocks' value is $14,605 million. Sixty Second Avenue Inc. has 300 million shares of common stock outstanding, and its weighted average cost of capital (WACC) equals 8.46%. Using the preceding information and the FCF you calculated in the previous question, calculate the appropriate values in this table. Term Value (Millions) Total firm value Value of common equity Intrinsic value per share