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The corporate valuation model, the price-to-earnings (P/E) multiple approach, and the economic vilue added (EVA) approach are some: examples of valuation techiniques. The corporate valuation

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The corporate valuation model, the price-to-earnings (P/E) multiple approach, and the economic vilue added (EVA) approach are some: examples of valuation techiniques. The corporate valuation model is simalar 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, of their dividends' are difficult to forecast. For that reason, some analysts use the corporate valuation model. Blur Coep, has an expected net operating peofit alter taxes, EBIT (1 - T), of $7,600 million in the cocrung year. In adition, the firm is expected to have net capital expenditures of $1,140 milion, and net operating working capital (NOWC) is expected to increase by \$10 million. How thuch free cish flow (FCP) is Blur Comp. expected to generate over the next year? 58,730 milion 56,450 twition {118,668 million 46,470 milion Blur Corp.'s rifis are expected to graw at a constant tate of 4.62% per year in the future. The market value of thur Corpis outstanding debt is. \$31,412 million, and its preferred stncks' value is 517,451 million. Blur Corp, has 150 million thores of comman stock outstanding, and its weighted verage cost of capetal (WACC) equals 13.86\%

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