Assignment 09 - Stocks and Their Valuation 10. Corporate valuation model Aa Aa E The corporate valuation model, the price-to-earnings (P/E) multiple approach, and the economic value-added (EVA) approach are some examples of valuation techniques. The corporate valuation model is similar to the dividend-based valuation that you've done in previous problems, but it focuses on a firm's free cash flows (FCFS) instead of its dividends. Some firms don't pay dividends, or their dividends are difficult to forecast. For that reason, some analysts use the corporate valuation model. Triptych Food Corp. has an expected net operating profit after taxes, EBIT(1 - 1), of $10,100 million in the coming year. In addition, the firm is expected to have net capital expenditures of $1,515 million, and net operating working capital (NOWC) is expected to increase by $40 million. How much free cash flow (FCF) is Triptych Food Corp. expected to generate over the next year? $11,575 million $157,213 million $8,545 million $8,625 million Triptych Food Corp.'s FCFs are expected to grow at a constant rate of 4.62% per year in the future. The market value of Triptych Food Corp.'s outstanding debt is $41,615 million, and preferred stocks' value is $23,120 million. Triptych Food Corp. has 600 million shares of common stock outstanding, and its weighted average cost of capital (WACC) equals 13.86% Value (Millions) Term Total firm value Value of common equity Intrinsic value per share Using the preceding information and the FCF you calculated in the previous question, calculate the appropriate values in this table