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9. More on the corporate valuation model Praxis Corp, is expected to generate a free cash flow (FCF) of $5,140.00 million this year (FCF, =$5,140.00

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9. More on the corporate valuation model Praxis Corp, is expected to generate a free cash flow (FCF) of $5,140.00 million this year (FCF, =$5,140.00 million), and the FCF is expected to grow at a rate of 21.40% over the following two years (FCF, and FCF,). After the third year, however, the FCF is expected to grow at a constant rate of 2.82% per year, which will last forever (FCF,). Assume the firm has no nonoperating assets, If Praxis Corp.'s weighted average cost of capital (WACC) is 8.46\%, what is the current total firm value of Praxis Corp.? (Note: Round all intermediate calculations to two decimal places.) $154,082,49 million $149,065,70 million $15,980.89 million $124,221,42 million Praxis Corp.'s debt has a market value of $93,166 million, and Praxis Corp. has no preferred stock. If Praxis Corp. has 675 million shares of common stock outstanding, what is Praxis Corp.'s estimated intrinsic value per share of common stock? (Note: Round all intermediate calculations to two decimal places.) $45.01 $138.02 $50.61 $46.01 a. How far away is the horizon date? 1. The teiminal, or horizon, date is the date when the growth rate becomes nonconstant. This occurs at time rero. It. The terminal, or horiton, date is the date when the growth rate becomes cocstant. This occurs at the beginning of Year 2 . III. The terminal, or horison, date is the date when the growth rate becomes constant, This occurs at the end of Year 2 i IV. The terminal, or harizon, date is infinity since common stocks do not have a maturity date. V. The terminal, or horiton, date is Year 0 since the value of a common stock is the present value of all future expected dividends at time rero. b. What is the firm's horizon, or continuing, value? Do not round intermediate calculations. Round your answer to the nearest cent. 6. What is the firm's intrinsic value today, 7 Do not round intermed ate calculations. found your answer to the nearest cent

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