Question
Globo-Chem Co. is expected to generate a free cash flow (FCF) of $6,610.00 million this year (FCF = $6,610.00 million), and the FCF is expected
Globo-Chem Co. is expected to generate a free cash flow (FCF) of $6,610.00 million this year (FCF = $6,610.00 million), 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 Globo-Chem Co.s weighted average cost of capital (WACC) is 12.78%, what is the current total firm value of Globo-Chem Co.? (Note: Round all intermediate calculations to two decimal places.)
$148,582.66 million
$19,758.13 million
$109,563.50 million
$131,476.20 million
Globo-Chem Co.s debt has a market value of $82,173 million, and Globo-Chem Co. has no preferred stock. If Globo-Chem Co. has 300 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.)
$100.43
$90.30
$91.30
$273.91
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