Valuation of the target company is a critical aspect of a merger transaction. Different methods are used in acquisition, valuations such as the corporate valuation method, the adjusted present value approach, the free cash flow to equity approach, and so on. Smith and T Co. is expected to generate a free cash flow (FCF) of $163.00 million this year (FCF1=$163.00 million), and the FCF is expected to grow at a rate of 21.40% over the following two years (FCF2 and FCF3). After the third year, however, the FCF is expected to grow at a constant rate of 2.82% per year, which will last forever (FCF4). Smith and T Co.'s weighted average cost of capital (WACC) is 8.46%. Use corporate valuation method to complete your analysis. - You would discount the FCFs using the in your valuation. - The horizon value of Smith and T Co.'s cash flows is . (Note: Round your intermediate calculations to two decimal places.) - The current total firm value of Smith and T Co. operations is . (Note: Do not round your intermediate calculations.) Smith and T Co. to Ziffy Corp. will be $760.28 million. $1,932.22 million. $2,954.28 million. $985.28 million. - The horizon value of Smith and T Co.'s cash flows is . (Note: Round your intermediate calculations to two decimal places.) - The current total firm value of Smith and T Co. opera . (Note: Do not round your intermediate calculations.) If Smith and T Co. carries $2,954 million of debt before firm has no nonoperating assets or preferred stock, the value of equity of Smith and T Co. to Ziffy Corp. will be - The current total firm value of Smith and T Co. operations is (Note: Do not round your intermediate calculations.) If Smith and T Co. carries $2,954 million of debt before the me no nonoperating assets or preferred stock, the value of equity of Smith and T Co. to Ziffy Corp. will be $760.28 million. $1,932.22 million