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Galaxy Corp. is expected to generate a free cash flow ( FCF ) of $ 8 , 6 2 0 . 0 0 million this
Galaxy Corp. is expected to generate a free cash flow FCF of $ million this year $ million and the is expected to grow
at a rate of over the following two years and : After the third year, however, the FCF is expected to grow at a constant rate of
per year, which will last forever Assume the firm has no nonoperating assets. If Galaxy Corp.s weighted average cost of capital WACC
is what is the current total firm value of Galaxy Corp.? Note: Round all intermediate calculations to two decimal places.
$ million
$ million
$ million
$ million
Galaxy Corp.s debt has a market value of $ million, and Galaxy Corp. has no preferred stock. If Galaxy Corp. has million shares of
common stock outstanding, what is Galaxy Corp.s estimated intrinsic value per share of common stock? Note: Round all intermediate calculations to
two decimal places.
$
$
$
$
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