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50 Click to see additional instructions XYZ corporation has $3,320,000 of debt and 5760,000 of preferred stock. The corporation's weighted average cost of capital (WACC)
50 Click to see additional instructions XYZ corporation has $3,320,000 of debt and 5760,000 of preferred stock. The corporation's weighted average cost of capital (WACC) is calculated 11%. The estimated free cash flows over the next 5 years, 2016 through 2020, are given in the table below. The corporation expects its free cash flow to grow at a constant rate of 3% after 2020. Year FCF 2016 $300,000 2017 $ 350,000 2018 $ 420.000 2019 $ 470,000 2020 $ 520,000 (Round to the nearest cents: use two decimals. The answers are in terms of dollars: provide your answers without the dollar sign, e.g. 1234.56) a. Calculate the entire value of corporation using the free cash flow valuation model. S b Calculate the common stock value of the corporation. S G if the corporation has 100.000 shares of common stock outstanding, calculate the value per share. S
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