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I just need help on the 2nd question = Globo-Chem Co. is expected to generate a free cash flow (FCF) of $4,495.00 million this year
I just need help on the 2nd question
= Globo-Chem Co. is expected to generate a free cash flow (FCF) of $4,495.00 million this year (FCF, = $4,495.00 million), and the FCF is expected to grow at a rate of 22.60% over the following two years (FCF, and FCF). After the third year, however, the FCF is expected to grow at a constant rate of 3.18% 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 9.54%, what is the current total firm value of Globo-Chem Co.? (Note: Round all intermediate calculations to two decimal places.) $97,229.90 million $123,446.39 million $13,836.64 million $116,675.88 million Globo-Chem Co.'s debt has a market value of $72,922 million, and Globo-Chem Co. has no preferred stock. If Globo-Chem Co. has 150 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.) $161.05 $162.05 $178.26 O $486.15Step by Step Solution
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