Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

More on the corporate valuation model ABC Telecom Inc. is expected to generate a free cash flow (FCF) of $10,185.00 million this year ($10,185.00 million),

More on the corporate valuation model
ABC Telecom Inc. is expected to generate a free cash flow (FCF) of $10,185.00 million this year ($10,185.00 million), and the FCF is expected to grow at a rate of 25.00% over the following two years (FCF 2 and FCF 2 ) After the third year, however , the FCF is expected to grow at a constant rate of 3.90% per year, which will last forever. Assume the firm has no nonoperating assets. ABC Telecom Inc.'s weighted average cost of capital (WACC) is 11.70%, what is the current total firm value of ABC Telecom Inc. (Note: Round all intermediate calculations to two decimal places)
ABC Telecom Inc.'s debt has a market value of $137,134 million , and ABC Telecom Inc. has no preferred stock. If ABC Telecom Inc. has 225 million shares of common stock outstanding , what is ABC Telecom Inc.'s estimated intrinsic value per share of common stock? (Note : Round all intermediate calculations to two decimal places)
SOS HELP!!!
image text in transcribed
image text in transcribed
8. More on the corporate valuation model ABC Telecom Inc. is expected to generate a free cash flow (FCF) of $10,185.00 million this year (FCF. - $10,185.00 million), and the FCF is expected to grow at a rate of 25.00% over the following two years (FCF. and FCF). After the third year, however, the FCF is expected to grow at a constant rate of 3.90% per year, which will last forever (FCF). Assume the firm has no nonoperating assets. 18 ABC Telecom Inc.'s weighted average cost of capital (WACC) 11.70%, what is the current total firm value of ABC Telecom Inc.? (Note: Round all intermediate calculations to tivo decimal places.) A 5182,845,50 million $219,414,60 million $242,724,32 million X530,740.56 million ABC Telecom Inc.'s debt has a market value of $137,134 million, and ABC Telecom Inc. has no preferred stock. If ABC Telecom Inc. has 225 million shares of common stock outstanding, what is ABC Telecom Inc.'s estimated intrinsic value per share of common stock? (Note: Round all intermediate calculations to two decimal places.) $223.48 $202.16 $203.16 3609.49

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Private Funds Where And How

Authors: Dechert LLP

2018 Edition

152650300X,1526503018

More Books

Students also viewed these Finance questions