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Tropetech Inc. has an expected net operating profit after taxes, EBIT(1 T), of $16,300 million in the coming year. In addition, the firm is expected

Tropetech Inc. has an expected net operating profit after taxes, EBIT(1 T), of $16,300 million in the coming year. In addition, the firm is expected to have net capital expenditures of $2,445 million, and net operating working capital (NOWC) is expected to increase by $50 million. How much free cash flow (FCF) is Tropetech Inc. expected to generate over the next year?

-$13,905 million

-$13,805 million

-$18,695 million

-$331,476 million

Tropetech Inc.s FCFs are expected to grow at a constant rate of 3.54% per year in the future. The market value of Tropetech Inc.s outstanding debt is $87,744 million, and its preferred stocks value is $48,746 million. Tropetech Inc. has 750 million shares of common stock outstanding, and its weighted average cost of capital (WACC) equals 10.62%.

Term

Value (Millions)

Total firm value
Intrinsic value of common equity
Intrinsic value per share

Using the preceding information and the FCF you calculated in the previous question, calculate the appropriate values in this table. Assume the firm has no nonoperating assets.

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