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The corporate valuation model, the price-to-eamings (P/E) multiple approach, and the economic value-added (EVA) approach are some examples of valuation techniques. The corporate valuation model

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The corporate valuation model, the price-to-eamings (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. Triptych Food Corp. has an expected net operating profit after taxes, EBIT(1 - T), of $5,000 million in the coming year. In addition, the firm is expected to have net capital expenditures of $750 million, and net operating working capital (NOWC) is expected to increase by $15 million. How much free cash flow (FCF) is Triptych Food Corp. expected to generate over the next year? $77,916 million O $5,735 million 0 $4,235 million $4,265 million Triptych Food Corp.'s FCFs are expected to grow at a constant rate of 1.62% per year in the future. The market value of Triptych Food Corp.'s outstanding debt is $20,625 million, and its preferred stocks' value is $11,458 million Triptych Food Corp, has 225 million shares of common stock outstanding, and its weighted average cost of capital (WACC) equals 13.56% Value (Millions) Term Total firm value Value of common equity Intrinsic value per share Using the preceding information and the Fof you calculated in the previous question, calculate the appropriate values in this table. Assume the firm has no nonoperating assets $4,235 million 0 $4,255 million Triptych Food Corp.'s FCFs are expected to grow ata constant rate of Triptych Food Corp.'s outstanding debt is $20,625 million, and its Triptych Food Corp. has 225 million shares of common stock outstandi, (WACC) equals 13.85%. Term Total firm value Value of common equity Intrinsic value per share Value (Millions) $91.666.67 $30.555.55 $148,813.10 $15,833.33 Using the pre calculated in the appropriate value no nanoperating a o search has an expected net operating profil tion, the firm is expected to have net capital tal (NOWC) is expected to increase by $ 15 million. How expected to generate over the next year? $77,916 million $5,735 million $4,235 million 0 $4,265 million Triptych Food Corp.'s FCFs are expected to grow ata constant rate of 4.62 of Triptych Food Corp.'s outstanding debt is $20,625 million, and its prefere Triptych Food Corp. has 225 million shares of common stock outstanding, and (WACC) equals 13.86% Term Total firm value Value of common equity Intrinsic value per share Value (Millions) 313,750.33 us $24.583.33 $25,208.33 $34,375.33 using the preceding in calculated in the previou appropriate values in this no nonoperating assets. ype here to search o N xpected net operating rm is expected to have net expected to increase by $ 15 million. to generate over the next year? O $77,916 million O $5,735 million O $4,235 million O $4,265 million Triptych Food Corp.'s FCFs are expected to grow ata constant rate of 4.629 of Triptych Food Corp.'s outstanding debt is $20,625 million, and its preferred Triptych Food Corp. has 225 million shares of common stock outstanding, and it (WACC) equals 13.85% Term Total firm value value of common equity Intrinsic value per share Value (Millions) SI12.04 $111.04 561.11 $152.75 Using the preceding inform calculated in the previous que appropriate values in this table. no nonoperating assets to search O Na

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