4. Corporate valuation model The corporate valuation model, the price-to-earnings (P/E) multiple approach, and the economic value added (EVA) approach are some examples of valuation techniques. The corporate valuation model is similar to the dividend-based valuation that you've done in previous problems, but it focuses on a firm's free cash flows (FCFS) instead of its dividends. Some firms don't pay dividends, or their dividends are difficult to forecast. For that reason, some analysts use the corporate valuation model. Charles Underwood Agency Inc. has an expected net operating profit after taxes, EBIT(1 - T), of $14,200 million in the coming year. In addition, the firm is expected to have net capital expenditures of $2,130 million, and net operating working capital (NOWC) is expected to increase by $35 million How much free cash flow (FCF) is Charles Underwood Agency Inc. expected to generate over the next year? O $16,295 million O $288,976 million O $12,105 million O $12,035 million Charles Underwood Agency Inc.'s FCFs are expected to grow at a constant rate of 3.54% per year in the future. The market value of Charles Underwood Agency Inc.'s outstanding debt is 576,494 million, and its preferred stocks' value is $42,496 million. Charles Underwood Agency Inc. has 525 million shares of common stock outstanding, and its weighted average cost of capital (WACC) equals 10.62% Term Value (Millions) Total firm value Intrinsic value of common equity Intrinsic value per share marles Underwood Agency Inc. has an expected net operating plum UN em is expected to have net capital expenditures of $2,130 million, and net operating working capital (N ow much free cash flow (FCF) is Charles Underwood Agency Inc. expected to generate over the next ye $16,295 million $288,976 million $12,105 million $12,035 million Charles Underwood Agency Inc.'s FCFS $113,323.92 Underwood Agency Inc.'s outstanding 525 million shares of common stock ou -$339,971.75 $169,985.88 grow at a constant rate of 3.54% per year in the fut million, and its preferred stocks' value is $42,496 mill ts weighted average cost of capital (WACC) equals 10. Term $720,280.79 Total firm value Intrinsic value of common equity Intrinsic value per share Using the preceding information and the FCF you calculated in the previous question, calculate the appropriate has no nonoperating assets. Charles Underwood Agency Inc.'s FCFs are expected to grow at a constant rate of 3.54% per year in the Underwood Agency Inc.'s outstanding $93.491.88 million, and its preferred stocks' value is $42,496 525 million shares of common stock ou its weighted average cost of capital (WACC) equals $127,489.88 $92,966.88 Term Total firm value $50,995.88 Intrinsic value of common equity Intrinsic value per share Using the preceding information and the FCF you calculated in the previous question, calculate the appropri has no nonoperating assets. Charles Underwood Agency Inc. has an expected net operating profit after taxes, EBIT(1 - T arm is expected to have net capital expenditures of $2,130 million, and net operating workin How much free cash flow (FCF) is Charles Underwood Agency Inc. expected to generate over $16,295 million $288,976 million $12,105 million $12,035 million Charles Underwood Agency Inc.'s FCFs are expected to grow at a constant rate of 3.54% per yea Underwood Agency Inc.'s outstanding debt is $76,494 million, and its preferred stocks' value is $4 525 million shares of common stock od 1788 and its weighted average cost of capital (WACC) $242.84 Term $97.14 ions) Total firm value Intrinsic value of common equity Intrinsic value per share $177.08 Using the preceding information and the FCF you calculated in the previous question, calculate the an has no nonoperating assets. Charles Underwood Agency Inc. has an expected net operating profit after taxes, EBIT(1 - T), of $14,200 million in the coming year. In addition, the firm is expected to have net capital expenditures of $2,130 million, and net operating working capital (NOWC) is expected to increase by $35 million. How much free cash flow (FCF) is Charles Underwood Agency Inc. expected to generate over the next year? $16,295 million $288,976 million $12,105 million $12,035 million Charles Underwood Agency Inc.'s FCFs are expected to grow at a constant rate of 3.54% per year in the future. The market value of Charles Underwood Agency Inc.'s outstanding debt is $76,494 million, and its preferred stocks' value is $42,496 million. Charles Underwood Agency Inc. has 525 million shares of common stock outstanding, and its weighted average cost of capital (WACC) equals 10.62% Term Value (Millions) Total firm value Intrinsic value of common equity Intrinsic value per share Using the preceding information and the FCF you calculated in the previous question, calculate the appropriate values in this table. Assume the firm has no nonoperating assets