The corporate valuation model, the price-to-earnings (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. Randall and Arts Inc. has an expected net operating profit after taxes, EBIT(1 - T), of $4,400 million in the coming year. In addition, the firm is expected to have net capital expenditures of $660 million, and net operating working capital (NOWC) is expected to increase by $50 million. How much free cash flow (FCF) is Randall and Arts Inc. expected to generate over the next year? O $67,890 million O $3,790 million O $3,690 million O $5,010 million Randall and Arts Inc.'s FCFs are expected to grow at a constant rate of 4.62% per year in the future. The market value of Randall and Arts Inc.'s outstanding debt is $17,971 million, and preferred stocks' value is $9,984 million. Randall and Arts Inc. has 750 million shares of common stock outstanding, and its weighted average cost of capital (WACC) equals 13.86%. Term Value (Millions) Using the preceding information and the FCF you calculated in the previous question, calculate the appropriate values in this table. Total firm value Value of common equity Intrinsic value per share