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 Blur Corp. has an expected net operating profit after taxes, EBIT(1 -T), of $500 million in the coming year. In addition, the firm is expected to have net capital expenditures of $75 million, and net operating working capital (NOWC) is expected to increase by $40 million. How much free cash flow (FCF) is Blur Corp. expected to generate ver the next year? $535 million O $465 million $9,244 million O $385 million Blur Corp.'s FCFs are expected to grow at a constant rate of 3.54% per year in the future. The market value of Blur Corp.'s outstanding debt is $2,447 million, and its preferred stocks' value is $1,359 million. Blur Corp. has 600 million shares of common stock outstanding, and its weighted average cost of capital (WACC) equals 10.62% Value (Millions) $5,437.85 $3,625.24 $23,048.73 $10,875.71 $5,437.85 Using the preceding information and the FCF you calculated in the previous question, calculate the appropriate values in this table. Assume the firm has no nonoperating assets Term Total firm value Value of common equity Intrinsic value per share