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Please help this is for a grade. Thank you! The corporate valuation model, the price-to-earnings (P/E) multiple approach, and the economic value-added (EVA) approach are
Please help this is for a grade. Thank you!
The corporate valuation model, the price-to-earnings (P/E) multiple approach, and the economic value-added (EVA) approach are some examples of valuation techniques. The corporate valuation model is similar to the dividend-based valuation that you've done in previous problems, but it focuses on a firm's free cash flows (FCFS) instead of its dividends. Some firms don't pay dividends, or their dividends are difficult to forecast. For that reason, some analysts use the corporate valuation model. Gadget Twin Inc. has an expected net operating profit after taxes, EBIT(1 - 1), of $10,000 million in the coming year. In addition, the firm is expected to have net capital expenditures of $1,500 million, and net working capital (NWC) is expected to increase by $10 million. How much free cash flow (FCF) is Gadget Twin Inc. expected to generate over the next year? O $135,140 million O $8,510 million O $8,490 million $11,490 million Gadget Twin Inc.'s FCFs are ex $52,996.25 at a constant rate of 5.34% per year in the future. The market value of Gadget Twin Inc.'s outstanding debt is $35,772 million, and p value is $19,874 million. Gadget Twin Inc. has 150 million shares of common stock outstanding, and its $223,299.44 weighted average cost of capi als 16.02%. $79,494.38 $158,988.76 Term Total firm value Value of common equity Intrinsic value per share Using the preceding information and the FCF you calculated in the previous question, calculate the appropriate values in this table. The corporate valuation model, the price-to-earnings (P/E) multiple approach, and the economic value-added (EVA) approach are some examples of valuation techniques. The corporate valuation model is similar to the dividend-based valuation that you've done in previous problems, but it focuses on a firm's free cash flows (FCFS) instead of its dividends. Some firms don't pay dividends, or their dividends are difficult to forecast. For that reason, some analysts use the corporate valuation model. Gadget Twin Inc. has an expected net operating profit after taxes, EBIT(1 - T), of $10,000 million in the coming year. In addition, the firm is expected to have net capital expenditures of $1,500 million, and net working capital (NWC) is expected to increase by $10 million. How much free cash flow (FCF) is Gadget Twin Inc. expected to generate over the next year? $135,140 million $8,510 million O $8,490 million $11,490 million Gadget Twin Inc.'s FCFs are expected to grow at a constant rate of 5.34% per year in the future. The market value of Gadget Twin Inc.'s outstanding debt is $35,772 million, and preferred stocks' value is $19,874 million. Gadget Twin Inc. has 150 million shares of common stock outstanding, and its weighted average cost of capital (WACC) equals 16.02%. Term Value (Millions) Total firm value Value of common equity Intrinsic value per share Using the preceding information and the FCF you calculated in the previous question, calculate the appropriate values in this table
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