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11. More on the corporate valuation model Lex Corp. is expected to generate a free cash flow (FCF) of $8,540.00 million this year (FCF =
11. More on the corporate valuation model Lex Corp. is expected to generate a free cash flow (FCF) of $8,540.00 million this year (FCF = $8,540.00 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 Lex Corp.s weighted average cost of capital (WACC) is 8.46%, what is the current total firm value of Lex Corp.? (Note: Round all intermediate calculations to two decimal places.) $247,669.63 million $26,551.91 million $206,391.36 million $256,004.92 million Lex Corp.s debt
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