Smith and T Co$.$ is expected to generate a free cash flow $($FCF$)$ of $$162\mathrm{.}00$ million this year $(FC{F}_1=$$$162\mathrm{.}00$ million$),$ and the $FCF$ is expected to grow at a rate of $19\mathrm{.}00\%$ over the following two years and $($:$FC{F}_3\}.$ After the third year, however, the FCF is expected to grow at a constant rate of $2\mathrm{.}10\%$ per year, which will last forever $(FC{F}_4).$ Smith and T Co$.\text{'}$s weighted average cost of capital $($WACC$)$ is $6\mathrm{.}30\%.$

Use corporate valuation method to complete your analysis.

You would discount the FCFs using the $q,$ in your valuation.

The horizon value of Smith and T Co$.\text{'}$s cash flows is $q,($Note: Round your intermediate calculations to two decimal places.$)$

The current total firm value of Smith and T Co$.$ operations is $\_.($Note: Do not round your intermediate calculations.$)$

If Smith and T Co$.$ carries $$3,868$ million of debt before the merger, and the firm has no nonoperating assets or preferred stock, the value of equity of Smith and $T$ Co$.$ to Ziffy Corp. will be

$$ $$1,288\mathrm{.}94$ million.

$$3,867\mathrm{.}94$ million.

$$538\mathrm{.}94$ million.

$$2,222\mathrm{.}90$ million.