More on the corporate valuation model

Acme Inc. is expected to generate a free cash flow $($FCF$)$ of $$12,615\mathrm{.}00$ million this year $(FC{F}_1=$$$12,615\mathrm{.}00$ million$),$ and the $FCF$ is expected to grow

at a rate of $25\mathrm{.}00\%$ over the following two years and $\{$:$FC{F}_3).$ After the third year, however, the $FCF$ is expected to grow at a constant rate of

$3\mathrm{.}90\%$ per year, which will last forever $(FC{F}_4).$ Assume the firm has no nonoperating assets. If Acme Inc.$\text{'}$s weighted average cost of capital $($WACC$)$ is

$11\mathrm{.}70\%,$ what is the current total firm value of Acme Inc.? $($Note: Round all intermediate calculations to two decimal places.$)$

$$226,469\mathrm{.}97$ million

$$38,075\mathrm{.}21$ million

$$271,763\mathrm{.}96$ million

$$300,635\mathrm{.}08$ million

Acme Inc.$\text{'}$s debt has a market value of $$169,852$ million, and Acme Inc. has no preferred stock. If Acme Inc. has $750$ million shares of common stock

outstanding, what is Acme Inc.$\text{'}$s estimated intrinsic value per share of common stock? $($Note: Round all intermediate calculations to two decimal

places.$)$

$$83\mathrm{.}04$

$$74\mathrm{.}49$

$$226\mathrm{.}47$

$$75\mathrm{.}49$