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5. More on the corporate valuation model Lex Corp. is expected to generate a free cash flow (FCF) of $9,935.00 million this year (FCF, =
5. More on the corporate valuation model Lex Corp. is expected to generate a free cash flow (FCF) of $9,935.00 million this year (FCF, = $9,935.00 million), and the FCF is expected to grow at a rate of 22.60% over the following two years (FCF, and FCF3). After the third year, however, the FCF is expected to grow at a constant rate of 3.18% per year, which will last forever (FCFA). Assume the firm has no nonoperating assets. If Lex Corp.'s weighted average cost of capital (WACC) is 9.54%, what is the current total firm value of Lex Corp.? (Note: Round all intermediate calculations to two decimal places.) O $257,880.88 million O $272,845.26 million O $214,900.73 million O $30,582.21 million Lex Corp.'s debt has a market value of $161,176 million, and Lex Corp. has no preferred stock. If Lex Corp. has 150 million shares of common stock outstanding, what is Lex Corp.'s estimated intrinsic value per share of common stock? (Note: Round all intermediate calculations to two decimal places.) O $357.16 O $1,074.50 O $358.16 O $393.98
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