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Attempts: Do No Harm: / 2 11. More on the corporate valuation model Lex Corp. is expected to generate a free cash flow (FCF) of
Attempts: Do No Harm: / 2 11. More on the corporate valuation model Lex Corp. is expected to generate a free cash flow (FCF) of $13,305.00 million this year (FCF, = $13,305.00 million), and the FCF is expected to grow at a rate of 22.60% over the following two years (FCF2 and FCF). After the third year, however, the FCF is expected to grow at a constant rate of 3.18% per year, which will last forever (FCF4). If Lex Corp.'s weighted average cost of capital (WACC) is 9.54%, what is the current total firm value of Lex Corp.? O $40,955.84 million O $345,355.39 million 0 $365,395.78 million O $287,796.16 million Lex Corp.'s debt has a market value of $215,847 million, and Lex Corp. has no preferred stock. If Lex Corp. has 600 million shares of common stock outstanding, what is Lex Corp.'s estimated intrinsic value per share of common stock? O $118.92 O $131.91 O $119.92 O $359.75
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