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Globo-Chem Co. is expected to generate a free cash flow (FCF) of $7,365.00 million this year (FCF = $7,365.00 million), and the FCF is expected
Globo-Chem Co. is expected to generate a free cash flow (FCF) of $7,365.00 million this year (FCF = $7,365.00 million), and the FCF is expected to grow at a rate of 22.60% over the following two years (FCF2 and FCF3). 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). Assume the firm has no nonoperating assets. If Globo-Chem Co.'s weighted average cost of capital (WACC) is 9.54%, what is the current total firm value of Globo-Chem Co.? (Note: Round all intermediate calculations to two decimal places.) O $191,171.81 million O $159,309.84 million O $202,265.18 million O $22,671.15 million Globo-Chem Co.'s debt has a market value of $119,482 million, and Globo-Chem Co. has no preferred stock. If Globo-Chem Co. has 450 million shares of common stock outstanding, what is Globo-Chem Co.'s estimated intrinsic value per share of common stock? (Note: Round all intermediate calculations to two decimal places.) O $87.51 O $265.52 O $88.51 O $97.36
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