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Luthor Corp. is expected to generate a free cash flow (FCF) of $8,570.00 million this year (FCF = $8,570.00 million), and the FCF is expected
Luthor Corp. is expected to generate a free cash flow (FCF) of $8,570.00 million this year (FCF = $8,570.00 million), and the FCF is expected to grow at a rate of 19.00% over the following two years (FCF and FCF). After the third year, however, the FCF is expected to grow at a constant rate of 2.10% per year, which will last forever (FCF). Assume the firm has no nonoperating assets. If Luthor Corp.s weighted average cost of capital (WACC) is 6.30%, what is the current total firm value of Luthor Corp.? (Note: Round all intermediate calculations to two decimal places.) $322,210.95 million $327,364.96 million $272,804.13 million $27,190.95 million Luthor Corp.s debt has a market value of $204,603 million
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