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10. Corporate valuation model The corporate valuation model, the price to earnings (P/E) multiple approach, and the economic value-added (EVA) approach are some examples of

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10. Corporate valuation model 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. Tropetech Inc. has an expected net operating profit after taxes, EBIT(1 - 1), of $16,300 million in the coming year. In addition, the firm is expected to have net capital expenditures of $2,445 million, and net working capital (NWC) is expected to increase by $50 million. How much free cash flow (FCF) is Tropetech Inc. expected to generate over the next year? $13,905 million $13,805 million $331,476 million $18,695 million Tropetech Inc.'s FCFs are expected to grow at a constant rate of 3.54% per year in the future. The market value of Tropetech Inc.'s outstanding debt is $87,744 million, and preferred stocks' value is $48,746 million. Tropetech Inc. has 750 million shares of common stock outstanding, and its weighted average cost of capital (WACC) equals 10.62% Tropetech Inc.'s FCFs are expected to grow at a constant rate of 3.54% per year in the future. The market value of Tropetech Inc.'s outstanding debt is $87,744 million, and preferred stocks' value is $48,746 million. Tropetech Inc, has 750 million shares of common stock outstanding, and its weighted average cost of capital (WACC) equals 10.62% Term Value (Millions) Total firm value Value of common equity Intrinsic value per share Using the preceding information and the FCF you calculated in the previous question, calculate the appropriate values in this table

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