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More on the corporate valuation model Galaxy Corp, is expected to generate a free cash flow ( FCF ) of $ 1 2 , 1
More on the corporate valuation model
Galaxy Corp, is expected to generate a free cash flow FCF of $ million this year FCF$ million and the is expected to grow at a rate of over the following two years FCF and FCF After the third year, however, the FCF is expected to grow at a constant rate of per year, which will last forever FCF Assume the firm has no nonoperating assets. If Galaxy Corp.s weighted average cost of capital WACC is what is the current total firm value of Galaxy Corp.? Note: Round all intermediate calculations to two decimal places.
$ million
$ million
$ miltion
$ million
Galaxy Corp.s debt has a market value of $ million, and Galaxy Corp. has no preferred stock. If Galaxy Corp. has million shares of common stock outstanding, what is Galaxy Corp.s estimated intrinsic value per share of common stock? Note: Round all intermediate calculations to two decimal places.
$
$
$
$
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