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10. Corporate valuation model The corporate valuation model, the price-to-earniogs (P/E) muliple appecach, 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-earniogs (P/E) muliple appecach, 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 vou've done in previous problems, but it focuses on o 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 proft affer taxes, EBrT(1 - T), of 51,200 million in the coming year, In addition, the firm is expected to. have net capital expenditures of $100 millon, 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 vear? 519,490 million $1,005 mimien $1,035 millien 11,365 mintion Tropetech inc:s FCFs are expected to grow at a constant rate of 4.62% per vear in the future. The market value of Tropetech incis outstanding debt is $4,394 mition; and its preferred stocks' value is $2,719 mitlion. Tropetech the, has 225 miltion shares of common stock outstanding, and its weighted average cont of capital (WACC) -equals 13,86%. Using the preceding information and the FCF you calculated in the previous question, calculate the appropriste values in this table. Assume the firm hos no nonoperating assets

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