Question
Omni Consumer Products Co. is expected to generate a free cash flow (FCF) of $3,955.00 million this year (FCF = $3,955.00 million), and the FCF
Omni Consumer Products Co. is expected to generate a free cash flow (FCF) of $3,955.00 million this year (FCF = $3,955.00 million), and the FCF is expected to grow at a rate of 26.20% over the following two years (FCF 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 (FCF). Assume the firm has no nonoperating assets. If Omni Consumer Products Co.s weighted average cost of capital (WACC) is 12.78%, what is the current total firm value of Omni Consumer Products Co.? (Note: Round all intermediate calculations to two decimal places.)
$88,902.28 million
$78,666.88 million
$65,555.73 million
$11,822.00 million
Omni Consumer Products Co.s debt has a market value of $49,167 million, and Omni Consumer Products Co. has no preferred stock. If Omni Consumer Products Co. has 600 million shares of common stock outstanding, what is Omni Consumer Products Co.s estimated intrinsic value per share of common stock? (Note: Round all intermediate calculations to two decimal places.)
$81.94
$27.31
$30.05
$26.31
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