Voluation of the target compony 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 TC0, is expected to generate a free cash flow (FCF) of $162.00 million this year (FCF1=$162.00 million), and the FCF is expected to grow at o rate of 19.00 ove over the following two years (FCF2 and FCF1). After the third year, however, the FCF is expected to grow at a constant rate of 2,10% per year, which will last forever (FCF4). Smith and T Co,' 3 weighted average cost of capital (WACC) is 6.30\%. Use corporate valuation method to complete your analysis. - You would discount the FCFs using the - The horizon value of Smith and TCo,'s cash flows is in your valuation: - The current total firm value of 5mith and TCo, operations is (Note: Round your intermediate calculations to two decimal places.) ( Note: Do not round your intermediate calculations.) Use corporate valuation method to complete your analysis. - You would discount the FCFs using the in your valuation. - The horizon value of 5mith and TCo2s - The current total firm value of 5mith ar . (Note: Round your intermediate calculations to two decimal places.) (Note: Do not round your intermediate calculationsi) If Smith and T Co, carties 53,862 million Smith and T.Co, to Ziffy Corp. will be , and the firm has no nonoperating assets or preferred stock, the value of equity of 51,280.94 militan. 5538.94 milion. 53,067,94 million. $2,222,90 million. Use corporate valuation method to complete your analysis. - You would discount the FCFs using the - The horizor value of Smith and T Co.'s cash flows is in your valuation. - The current total firm value of Sm th and T Co. opera (Note: Round your intermediate calculations to two decimal places.) . (Note: Do not round your intermediate calculations.) If Smith and TCo0, carries $3,868 milion 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 51,286,94 million. 5538.94 million. $3,867,94 million. Use corporate valuation method to complete your analysis, - You would discount the FCFs using the in your valuation. - The horizon value of 5 mith and T Co.'s cash fows is (Note: Round your intermediate calculations to two decimal places.) - The current total firm value of 5mith and TCo. operations is (Note: Do not round your intermediate caiculations.) If 5 mith and T Co, carries $3,868 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 51,280.94 million. $538.94 million. \$3,867,94 million. $2,222.90 million
