11. More on the corporate valuation model

Ankh-Sto Associates Co. is expected to generate a free cash flow (FCF) of $6,450.00 million this year (FCF = $6,450.00 million), and the FCF is expected to grow at a rate of 19.00% over the following two years (FCF and FCF). After the third year, however, the FCF is expected to grow at a constant rate of 2.10% per year, which will last forever (FCF). Assume the firm has no nonoperating assets. If Ankh-Sto Associates Co.s weighted average cost of capital (WACC) is 6.30%, what is the current total firm value of Ankh-Sto Associates Co.? (Note: Round all intermediate calculations to two decimal places.)

$246,382.91 million

$20,464.59 million

$242,503.88 million

$205,319.09 million

Ankh-Sto Associates Co.s debt has a market value of $153,989 million, and Ankh-Sto Associates Co. has no preferred stock. If Ankh-Sto Associates Co. has 150 million shares of common stock outstanding, what is Ankh-Sto Associates Co.s estimated intrinsic value per share of common stock? (Note: Round all intermediate calculations to two decimal places.)

$1,026.59

$342.20

$376.42

$341.20