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 coroporate valuation model is similar to the dividened-based valuation that you've done in previous problems, but it focuses on a firm's free cash flow (FCFs) instead of its dividends. Some firms dont pay dividends, or their divends are difficult to forecast. For that reason, some analysts use the corporate valuation model.

Charles Underwood Angecy Inc., has an expected net operating profit after taxes, EBIT (1-T), of $12,300 million in the coming year. In additon, the firm is expected to have a net capital of expenditures of $1,845 million, and net operating working captial (NOWC) is expected to increase by $35 million. How much is free cash flow (FCF) is Charles Underwood Angecy expected to generate over the next year?

a. $14,110 million

b. $165,861 million

c. $10,490 million

d. $10,420 million

Charles Underwood Angecy Inc. FCFs are expected to grow at a constant rate of 5.34% per year in the future. The market value of charles underwood angecy outstanding debt is $43,904 million, and preferred stock value is $24,391 million. Charles Underwood Angecy has 525 million shares of common stock outstanding, and its weighted average cost of capital (WACC) equals 16.02%.

Term	Value (millions)
Total firm value	a. $195,131.09 b. $95,565.54 c. $65,043.70 d. $274,068.73
value of common equity	a. $29,270.54 b. $53,136.54 c. $53,661.54 d. $73,174.54
intrinsic value per share	a. $138.38 b. $55.75 c. $102.21 d. $101.21