Question
Ankh-Sto Associates Co. is expected to generate a free cash flow (FCF) of $13,245.00 million this year (FCF = $13,245.00 million), and the FCF is
Ankh-Sto Associates Co. is expected to generate a free cash flow (FCF) of $13,245.00 million this year (FCF = $13,245.00 million), and the FCF is expected to grow at a rate of 20.20% over the following two years (FCF and FCF). After the third year, however, the FCF is expected to grow at a constant rate of 2.46% per year, which will last forever (FCF). Assume the firm has no nonoperating assets. If Ankh-Sto Associates Co.s weighted average cost of capital (WACC) is 7.38%, what is the current total firm value of Ankh-Sto Associates Co.? (Note: Round all intermediate calculations to two decimal places.)
$41,597.80 million
$363,467.47 million
$440,117.92 million
$436,160.96 million
Ankh-Sto Associates Co.s debt has a market value of $272,601 million, and Ankh-Sto Associates Co. has no preferred stock. If Ankh-Sto Associates Co. has 225 million shares of common stock outstanding, what is Ankh-Sto Associates Co.s estimated intrinsic value per share of common stock? (Note: Round all intermediate calculations to two decimal places.)
$402.85
$1,211.56
$444.24
$403.85
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