Question
Answer these questions please Acme Corp. is expected to generate a free cash flow (FCF) of $315.00 million this year (FCF = $315.00 million), and
Answer these questions please
Acme Corp. is expected to generate a free cash flow (FCF) of $315.00 million this year (FCF = $315.00 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 Acme Corp.s weighted average cost of capital (WACC) is 8.46%, what is the current total firm value of Acme Corp.? (Note: Round all intermediate calculations to two decimal places.)
A)$9,135.41 million
B)$979.38 million
C)$7,612.84 million
D)$9,442.86 million
Acme Corp.s debt has a market value of $5,710 million, and Acme Corp. has no preferred stock. If Acme Corp. has 375 million shares of common stock outstanding, what is Acme Corp.s estimated intrinsic value per share of common stock? (Note: Round all intermediate calculations to two decimal places.)
A)$15.23
B)$5.07
C)$5.58
D)$4.07
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