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help please with both The corporate valuation model, the price-to-earnings (P/E) multiple approach, and the economic value added (EVA) approach are some examples of valuation
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The corporate valuation model, the price-to-earnings (P/E) multiple approach, and the economic value added (EVA) approach are some examples of valuation techniques. The corporate valuation model is similar to the dividend-based valuation that you've done in previous problems, but it focuses on a firm's free cash flows (FCFs) instead of its dividends. Some firms don't pay dividends, or their dividends are difficult to forecast. For that reason, some analysts use the corporate valuation model. Gadget Twin Inc, has an expected net operating profit after taxes, EBIT (1T), of $3,500 million in the coming year. In addition, the firm is expected to have net capital expenditures of $525 million, and net operating working capital (NOwC) is expected to increase by $20 million. How much free cash flow (FCF) is Gadget Twin Inc. expected to generate over the next year? $58,961 milion $2,955 million $4,005 miltion $2,995 million Gadget Twin Inci's FCFs are expected to grow at a constant rate of 4.26% per year in the future. The market value of Gadget Twin Inc's outstanding debt is $15,607 milion, and its preferred stocks' value is $8,671 million. Gadget Twin Inc. has 300 million shares of common stock outstanding, and its weighted average cost of capital (WACC) equals 12.78%. The corporate valuation model, the price-to-earnings (P/E) multiple approach, and the economic value added (EVA) approach are some examples of valuation techniques. The corporate valuation model is similar to the dividend-based valuation that you've done in previous problems, but it focuses on a firm's free cash flows (FCFs) instead of its dividends. Some firms don't pay dividends, or their dividends are difficult to forecast. For that reason, some analysts use the corporate valuation model. Gadget Twin Inc, has an expected net operating profit after taxes, EBIT (1T), of $3,500 million in the coming year. In addition, the firm is expected to have net capital expenditures of $525 million, and net operating working capital (NOwC) is expected to increase by $20 million. How much free cash flow (FCF) is Gadget Twin Inc. expected to generate over the next year? $58,961 milion $2,955 million $4,005 miltion $2,995 million Gadget Twin Inci's FCFs are expected to grow at a constant rate of 4.26% per year in the future. The market value of Gadget Twin Inc's outstanding debt is $15,607 milion, and its preferred stocks' value is $8,671 million. Gadget Twin Inc. has 300 million shares of common stock outstanding, and its weighted average cost of capital (WACC) equals 12.78% Step by Step Solution
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