Ch 09: Assignment- Stocks and Their Valuation 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 difficuit to forecast. For that reason, some analysts use the corporate valuation model. Spordyne Inc. has an expected net operating profit after taxes, EBITC1 -T), of $3,500 million in the coming year. In addition, the firm is expected to have net capital expenditures of $525 million, and net operating working capital (NOWC) is expected to increase by $50 million. How much free cash now (FCF) is Spordyne Inc. expected to generate over the next year? $3,025 million O $3,975 million O $63,750 million O $2,925 million Spordyne Inc.'s FCFs are expected to grow at a constant rate of 3.90% per year in the future. The market value of Spordyne Inc.'s outstanding debt is $16,875 million, and preferred stocks' value is $9,375 million. Spordyne Inc. has 750 million shares of common stock outstanding, and its weighted average cost of capital (WACC) equals 11.70%. Using the preceding information and the FCF you calculated in the previous question, calculate the Value (Millions) values in this table. Total firm value Value of common equity Intrinsic value per share 0 Type here to search