8. Corporate valuation model The corporate valuation model, the price-to-earings (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. Gadget Twin Inc. has an expected net operating profit after taxes, EBIT(1 - 1), of $3,500 million in the coming year. In addition, the firm is expected to have net capital expenditures of $525 milion, and net operating working capital (NOWC) is expected to increase by $20 million. How much free cash flow (FCF) is Gadget Twin Inc. expected to generate over the next year? O $2,905 million O 54,005 milion $58,001 million O $2,955 million Gadget Twin Inc.'s FCFs are expected to grow at a constant rate of 4.26% per year in the future. The market value of Gadget Twin Inc.'s outstanding debt is $15,007 million, and its preferred stocks' value is $8,671 million, Gadget Twin Inc. has 300 million shares of common stock outstanding, and its weighted average cost of capital (WACC) equals 12.78% Value (Millions) Term Total firm value intrinse 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