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Luthor Corp. is expected to generate a free cash flow (FCF) of $2,615.00 million this year (FCF1 = $2,615.00 million), and the FCF is expected
Luthor Corp. is expected to generate a free cash flow (FCF) of $2,615.00 million this year (FCF1 = $2,615.00 million), and the FCF is expected to grow at a rate of 26.20% over the following two years (FCF2 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 (FCF4). If Luthor Corp.'s weighted average cost of capital (WACC) is 12.78%, what is the current total firm value of Luthor Corp.? O $43,344.66 million O $7,816.56 million O $58,781.11 million O $52,013.59 million Luthor Corp.'s debt has a market value of $32,508 million, and Luthor Corp. has no preferred stock. If Luthor Corp. has 300ilion shares of common stock outstanding, what is Luthor Corp.'s estimated intrinsic value per share of common stock? O $39.73 O $35.12 O $108.36 O $36.12
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