Question
Hello, could you please help me with this problem. I am doing something wrong. Could you show me how to in excel? Allied Biscuit Co.
Hello, could you please help me with this problem. I am doing something wrong.
Could you show me how to in excel?
Allied Biscuit Co. is expected to generate a free cash flow (FCF) of $6,520.00 million this year (FCF = $6,520.00 million), and the FCF is expected to grow at a rate of 20.20% over the following two years (FCF and FCF). After the third year, however, the FCF is expected to grow at a constant rate of 2.46% per year, which will last forever (FCF). Assume the firm has no nonoperating assets. If Allied Biscuit Co.'s weighted average cost of capital (WACC) is 7.38%, what is the current total firm value of Allied Biscuit Co.? (Note: Round all intermediate calculations to two decimal places.)
$214,704.94 million
$216,652.79 million
$20,476.98 million
$178,920.78 million
Allied Biscuit Co.'s debt has a market value of $134,191 million, and Allied Biscuit Co. has no preferred stock. If Allied Biscuit Co. has 375 million shares of common stock outstanding, what is Allied Biscuit Co.'s estimated intrinsic value per share of common stock? (Note: Round all intermediate calculations to two decimal places.)
$357.84
$118.28
$131.21
$119.28
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