Question
Widget corp is expected to generate a free cash flow of $2,520.00 million this year and the FCF is expected to grow at a rate
Widget corp is expected to generate a free cash flow of $2,520.00 million this year and the FCF is expected to grow at a rate of 19.00% over the following two years. After the third year, the FCF is expected to grow at a constant rate of 2.10% per year, which will last forever. If widget corp's weighted average cost of capital is 6.30%, what is the currect total firm value of widget corp? 96,261.24 million 80,217.70 million 94,745.71 million 7,995.47 million Widget corp's debt has a market value of 60,163 million, and widget corp has no preferred stock. if widget corp has 450 million shares of common stock outstanding, what is widget corp's estimated intrinsic value per share of common stock? 49.02 44.57 133.70 43.57
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