Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Extensive Enterprise Inc. is expected to generate a free cash fiow (FCF) of $15,030.00 million this year ( FCF, =$15,030.00million ), and the FCF is

image text in transcribed
Extensive Enterprise Inc. is expected to generate a free cash fiow (FCF) of $15,030.00 million this year ( FCF, =$15,030.00million ), and the FCF is expected to grow at a rate of 26.20% over the following two years (FCF, and FCF, ). After the third year, however, the FCF is expected to grow at a constant rate of 4.26% per year, which will last forever (FCF,). Assume the firm has no nonoperating assets. If Extensive Enterprise Incis weighted average cost of capital (WACC) is 12.78%, what is the current total firm value of Extensive Enterprise Inc.? (Note: Round all intermediate calculations to two decimal places.) $44,926.58 million $298,954.01 million $249,128.34 million $337,851.11 million Extensive Enterprise Inci's debt has a market value of $186,846 million, and Extensiv Enterprise Inc. has no preferred stock. If Extensive Enterprise Inc, has 225 million stiares of common stock outstanding, what is Extensive Enterprise Incis estimated intrinsic value per share of common stock? (Note: Round all intermediate calculations to two decimal places.) $275.81 3276,81 $830.43 $304,49

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finance Theory And Practice

Authors: Anne Marie Ward

2nd Edition

1907214259, 978-1907214257

More Books

Students also viewed these Finance questions