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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
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. Triptych Food Corp. has an expected net operating profit after taxes, EBIT(1 - T), of $10, 200 million in the coming year. In addition, the firm is expected to have net capital expenditures of $1, 530 million, and net operating working capital (NOWC) is expected to increase by $25 million. How much free cash flow (FCF) is Triptych Food Corp. expected to generate over the next year? $8, 645 million $159, 053 million $8, 695 million $11, 705 million Triptych Food Corp.'s FCFs are expected to grow at a constant rate of 4.62% per year in the future. The market value of Triptych Food Corp.'s outstanding debt is $42, 102 million, and preferred stocks' value is $23, 390 million. Triptych Food Corp. has 375 million shares of common stock outstanding, and its weighted average cost of capital (WACC) equals 13.86%. Using the preceding information and the FCF you calculated in the previous question, calculate the appropriate values in this table
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