11. More on the corporate valuation model

Globo-Chem Co. is expected to generate a free cash flow (FCF) of $6,845.00 million this year (FCF = $6,845.00 million), and the FCF is expected to grow at a rate of 26.20% over the following two years (FCF and FCF). After the third year, however, the FCF is expected to grow at a constant rate of 4.26% 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 12.78%, what is the current total firm value of Globo-Chem Co.? (Note: Round all intermediate calculations to two decimal places.)

$113,458.68 million

$136,150.42 million

$153,865.04 million

$20,460.58 million