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9. Corporate valuation model AaAa The corporate valuation model, the price-to-earnings (P/E) multiple approach, and the economic value-added (EVA) approach are some examples of valuation
9. Corporate valuation model AaAa 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. Tropetech Inc. has an expected net operating profit after taxes, EBIT(1 T), of $400 million in the coming year. In addition, the firm is expected to have net capital expenditures of $60 million, and net operating working capital (NOWC) is expected to increase by $15 million. How much free cash flow (FCF) is Tropetech Inc. expected to generate over the next year? O $355 million O $445 million O $325 million O $6,486 million Sessi Time
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