Question
Ankh-Sto Associates Co. is expected to generate a free cash flow (FCF) of $6,350.00 million this year (FCF = $6,350.00 million), and the FCF is
Ankh-Sto Associates Co. is expected to generate a free cash flow (FCF) of $6,350.00 million this year (FCF = $6,350.00 million), and the FCF is expected to grow at a rate of 19.00% over the following two years (FCF and FCF). After the third year, however, the FCF is expected to grow at a constant rate of 2.10% 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 6.30%, what is the current total firm value of Ankh-Sto Associates Co.? (Note: Round all intermediate calculations to two decimal places.)
$242,563.12 million
$20,147.32 million
$202,135.93 million
$238,744.22 million
Ankh-Sto Associates Co.s debt has a market value of $151,602 million, and Ankh-Sto Associates Co. has no preferred stock. If Ankh-Sto Associates Co. has 375 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.)
$134.76
$133.76
$404.27
$148.23
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