11. More on the corporate valuation model

Globo-Chem Co. is expected to generate a free cash flow (FCF) of $12,130.00 million this year (FCF = $12,130.00 million), and the FCF is expected to grow at a rate of 21.40% over the following two years (FCF and FCF). After the third year, however, the FCF is expected to grow at a constant rate of 2.82% per year, which will last forever (FCF). Assume the firm has no nonoperating assets. If Globo-Chem Co.s weighted average cost of capital (WACC) is 8.46%, what is the current total firm value of Globo-Chem Co.? (Note: Round all intermediate calculations to two decimal places.)

$363,623.06 million

$351,783.82 million

$37,713.66 million

$293,153.18 million

Globo-Chem Co.s debt has a market value of $219,865 million, and Globo-Chem Co. has no preferred stock. If Globo-Chem Co. has 375 million shares of common stock outstanding, what is Globo-Chem Co.s estimated intrinsic value per share of common stock? (Note: Round all intermediate calculations to two decimal places.)

$194.44

$586.31

$195.44

$214.98