Question
Ankh-Sto Associates Co. is expected to generate a free cash flow (FCF) of $14,670.00 million this year (FCF = $14,670.00 million), and the FCF is
Ankh-Sto Associates Co. is expected to generate a free cash flow (FCF) of $14,670.00 million this year (FCF = $14,670.00 million), and the FCF is expected to grow at a rate of 26.20% over the following two years (FCF and FCF). After the third year, however, the FCF is expected to grow at a constant rate of 4.26% 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 12.78%, what is the current total firm value of Ankh-Sto Associates Co.? (Note: Round all intermediate calculations to two decimal places.)
$329,758.95 million
$291,793.50 million
$43,850.50 million
$243,161.25 million
Ankh-Sto Associates Co.s debt has a market value of $182,371 million, and Ankh-Sto Associates Co. has no preferred stock. If Ankh-Sto Associates Co. has 525 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.)
$127.37
$115.79
$347.37
$114.79
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