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Please help with these questions B ng.cengage.com '1'; CENGAGE | MINDTAP Assignment 09 - Stocks and Their Valuation D Institution Page ng.cengage.com Homework Help -

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B ng.cengage.com '1'; CENGAGE | MINDTAP Assignment 09 - Stocks and Their Valuation

D Institution Page ng.cengage.com Homework Help - Q&A from Online Tutors - Course Hero MindTap - Cengage Learning Q Search this course CENGAGE I MINDTAP Assignment 09 - Stocks and Their Valuation o x < Back to Assignment Attempts: Average: / 2 11. More on the corporate valuation model Demo Inc. is expected to generate a free cash flow (FCF) of $8,910.00 million this year (FCFI = $8,910.00 million), and the FCF is expected to grow at a rate of 20.20% over the following two years (FCF2 and FCF3). After the third year, however, the FCF is expected to grow at a constant rate of 2.46% per year, which will last forever (FCF4). If Demo Inc.'s weighted average cost of capital (WACC) is 7.38%, what is the current total firm value of Demo Inc.? O $293,408.24 million O $244,506.87 million O $27,983.12 million O $296,070.11 million Demo Inc.'s debt has a market value of $183,380 million, and Demo Inc. has no preferred stock. If Demo Inc. has 225 million shares of common stock outstanding, what is Demo Inc.'s estimated intrinsic value per share of common A-Z Office stock? O $271.68 O $298.84 O $270.68 O $815.02 Flash Player MAC Q3 3.34.1 @ 2004-2016 APIia. All rights reserved. Grade It Now 2013 Cengage Learning except as noted. All rights reserved. Save & Continue Continue without saving

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