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7. More on the corporate valuation model ABC Telecom Inc. is expected to generate a free cash flow (FCF) of $11,935.00 million this year (FCF:
7. More on the corporate valuation model ABC Telecom Inc. is expected to generate a free cash flow (FCF) of $11,935.00 million this year (FCF: = $11,935.00 million), and the FCF is expected to grow at a rate of 26.20% over the following two years (FCF2 and FCF3). After the third year, however, the FCF is expected to grow at a constant rate of 4.26% per year, which will last forever (FCF4). Assume the firm has no nonoperating assets. If ABC Telecom Inc.'s weighted average cost of capital (WACC) is 12.78%, what is the current total firm value of ABC Telecom Inc.? (Note: Round all intermediate calculations to two decimal places.) O $197,827.53 million O $237,393.04 million O $268,280.40 million O $35,675.24 million ABC Telecom Inc.'s debt has a market value of $148,371 million, and ABC Telecom Inc. has no preferred stock. If ABC Telecom Inc. has 750 million shares of common stock outstanding, what is ABC Telecom Inc.'s estimated intrinsic value per share of common stock? (Note: Round all intermediate calculations to two decimal places.) O $72.54 O $197.83 O $65.94 O $64.94
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