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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

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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 $1,200 million in the coming year. In addition, the firm is expected to have net capital expenditures of $180 million, and net operating working capital (NOWC) is expected to increase by $15 million. How much free cash flow (FCF) is Tropetech Inc. expected to generate over the next year? $18,490 million $1,005 million $1,365 million $1,035 million Tropetech Inc.'s FCFs are expected to grow at a constant rate of 4,62% per year in the future. The market value of Tropetech Inc.'s outstanding debt is $4,894 million, and its preferred stocks' value is $2,719 million. Tropetech Inc. has 225 million shares of common stock outstanding, and its weighted average cost of capital (WACC) equals 13.86% tropetecn inc. nas an expected net operating pront arter taxes, til-1), or $1,200 million in the coming year. In action, the hirm is expected to have net capital expenditures of $180 million, and net operating working capital (NOWC) is expected to increase by $15 million. How much free cash flow (FCF) is Tropetech Inc, expected to generate over the next year? $18,490 million $1,005 million $1,365 million $1,035 million Tropetech Inc.'s FCFs are expected to grow at a constant rate of 4,62% per year in the future. The market value of Tropetech Inc.'s outstanding debt Is $4,894 million, and its preferred stocks' value is $2,719 million, Tropetech Inc. has 225 million shares of common stock outstanding, and its weighted average cost of capital (WACC) equals 13.86% Value (Millions) Term Total firm value Intrinsic 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. Assume the firm has no nonoperating assets

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