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Charles Underwood Agency Inc. has an expected net operating profit after taxes, EBIT(1 - T), of $2,600 million in the coming year. In addition, the
Charles Underwood Agency Inc. has an expected net operating profit after taxes, EBIT(1 - T), of $2,600 million in the coming year. In addition, the firm is expected to have net capital expenditures of $390 million, and net operating working capital (NOWC) is expected to increase by $45 million. How much free cash flow (FCF) is Charles Underwood Agency Inc. expected to generate over the next year? $2,255 million $32,285 million $2,945 million $2,165 million Charles Underwood Agency Inc.'s FCFs are expected to grow at a constant rate of 5.70% per year in the future. The market value of Charles Underwood Agency Inc.'s outstanding debt is $8,546 million, and preferred stocks' value is $4,748 million. Charles Underwood Agency Inc. has 675 million shares of common stock outstanding, and its weighted average cost of capital (WACC) equals 17.10%. 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. $37,982.46 $12,660.82 $18,991.23 $49,975.70 Value (Millions) Us ca Term Total firm value Value of common equity Intrinsic value per share ap $14,243.23 $9,770.23 $5,697.23 $10,445.23 Term Value (Millions) Total firm value Value of common equity Intrinsic value per share $14.47 $8.44 $15.47 $21.10
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