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Smith and T Co . is expected to generate a free cash flow ( FCF ) of $ 1 0 , 0 0 5 .

Smith and T Co. is expected to generate a free cash flow (FCF) of $10,005.00 million this year (FCF= $10,005.00 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 Smith and T Co.s weighted average cost of capital (WACC) is 12.78%, what is the current total firm value of Smith and T Co.?(Note: Round all intermediate calculations to two decimal places.)
$199,004.34 million
$29,906.21 million
$165,836.95 million
$224,896.94 million
Smith and T Co.s debt has a market value of $124,378 million, and Smith and T Co. has no preferred stock. If Smith and T Co. has 375 million shares of common stock outstanding, what is Smith and T Co.s estimated intrinsic value per share of common stock? (Note: Round all intermediate calculations to two decimal places.)
$121.61
$109.56
$331.67
$110.56

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