Answered step by step
Verified Expert Solution
Question
1 Approved Answer
11. More on the corporate valuation model Extensive Enterprise Inc. is expected to generate a free cash flow (FCF) of 55,915.00 million this year (FCF:
11. More on the corporate valuation model Extensive Enterprise Inc. is expected to generate a free cash flow (FCF) of 55,915.00 million this year (FCF: = $5.915.00 million), and the FCF is expected to grow at a rate of 22.60% over the following two years (FCF2 and FCF.). After the third year, however, the FCF is expected to grow at a constant rate of 3.18% per year, which will last forever (FCF4). Assume the firm has no nonoperating assets. If Extensive Enterprise Inc's weighted average cost of capital (WACC) is 9.54%, what is the current total firm value of Extensive Enterprise Inc.? (Note: Round all intermediate calculations to two decimal places.) O $18,207.72 million O $162,443.73 million O $153,534.40 million O $127,945.33 million Extensive Enterprise Inc.'s debt has a market value of $95,959 million, and extensive Enterprise Inc. has no preferred stock. If Extensive Enterprise Inc. has 525 million shares of common stock outstanding, what is Extensive Enterprise Inc.'s estimated intrinsic value per share of common stock? (Note: Round all intermediate calculations to two decimal places.) O $59.93 O $60.93 O $67.02 O $182.78
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started